Building A Computer :: essays research papers

Building a computer   Ã‚  Ã‚  Ã‚  Ã‚  Building a computer can be a useful skill in today's world. It allows you to help yourself get what you want and save some money. It's also becoming a good skill to have for work. You can help businesses build computers.   Ã‚  Ã‚  Ã‚  Ã‚  The first thing to do is to research what kind of computer you want. If you just want to write documents, you will probably need a less powerful computer. If you play games and/or design art you will want a more high-end computer. Once you have decided what kind of computer you want, you should look up prices on the Internet, ads, and local stores. A high-end will cost about $1200. You will save about $800 if you bought it from a company.   Ã‚  Ã‚  Ã‚  Ã‚  The next step is buying the computer parts. You will need a CPU (processor), ram, a video card, a sound card, a modem, a floppy disk drive, a cd- rom, a monitor, a motherboard, a keyboard, a mouse, and a case(outside shell). You can purchase these items from the Internet, ads, and stores. The better products normally come from stores, but if you want a more low-end computer you can buy the parts from other places. It is important that you look at the compatibility of the parts in the computer.   Ã‚  Ã‚  Ã‚  Ã‚  The next step is putting the computer together. First you will need to put the mother board in it's proper places. Then you should put the floppy disk drive and the cd-rom in their designated area. You should then put the other parts on their proper place on the motherboard. You will then have to connect all the cords from the motherboard to the cd-rom, disk drive, and all other cords. After that you should turn your computer on and install your cd-rom from the software you got

Willa Cathers Death Comes for the Archbishop :: Willa Cather Death Comes for the Archbishop

Willa Cather's Death Comes for the Archbishop - A Powerful Non-Novel Responding to the criticism that Death Comes for the Archbishop is not a novel, Willa Cather proposed that the work was a narrative. Her choice of the word narrative signifies that the structure of Death Comes for the Archbishop is closer to that of a biography. A narrative is a type of composition used to recount events over a period of time and can incorporate description as well plot, but it does not necessarily have to. Death Comes for the Archbishop follows the guidelines of a narrative in that it recounts the events of Father Latour's life, beginning when he is appointed to New Mexico and ending with his death. Cather incorporates description into her narration, but does not offer dramatic plot structure. A novel utilizes the elements of narration, specifically including description and plot. Novels also incorporate a climax to the story along with denouement. Plot is unfolded by the actions, speech and thoughts of a character. It is these actions that lead to the climax and the resolution of the story. Based upon the guidelines used to classify a novel, Death Comes for the Archbishop does not meet the requirements and is therefore not a novel. Her work tells a story, but does not offer plot, climax or resolution. The events that are recounted in Cather's work do not build upon each other in order to offer a climax. Each event is no more significant than the one before it; for example, Cather places just as much emphasis on Latour's relationship with Olivares as he does with helping Sade pray (p 175, 213). While the events themselves do not add up to create the dramatic plot structure necessary to call Death Comes for the Archbishop a novel, each individual event experienced by Latour, is in itself a story that includes both climax and resolution. An example of this is Father Latour's death. It begins with him getting sick and living his last days, building up to his final moments and culminating in his death. The resolution to this individual event is the bell tolling and Latour being placed in the church he built. Each event in Latour's life does have plot and resolution, creating difficulty in not calling it a novel. However, if the work is examined as a whole piece, from beginning to end, it is evident that while it fits the boundaries of narration, it does not meet the qualifications of a novel.

Genetically Modified Organisms in Agriculture Essay

Genetically modified organisms especially in agriculture has attracted global concern over the last few years. People from all walks of life, politicians, consumers, activists, farmers biotechnologists as well as technology regulators have been involved in the heated debate. Evidence has been brought forward on the massive benefits of genetically modified crops due to the food insecurity in the world as a result of low agricultural productivity and the ever increasing population. However, many consider the adoption of genetic engineering technology in agriculture as a time bomb. These concerns have resulted into changes in the importation and exportation policies, intensive regulation of agricultural technology and practices in many parts of the world. Different environmental organizations around the world have protested against genetically modified organism due to it potential effect on the environment. Despite these arguments, this technology is being adopted by farmers around the world knowingly or unknowingly. But the big issue is the costs and benefit of genetic engineering in agriculture. Whether the benefits of increased agricultural production at reduced cost overrides the environmental and food safety concerns has always been the big issue (Nelson, p 4). What are genetically modified crops? Over the years, research in biotechnology has advanced significantly. Biotechnology is a field of technology that deals with living systems. For many centuries, biotechnology has been employed in agriculture and manufacturing industries, for example fermentation processes for industrial production of wine has been used for many centuries. Principles of genetics and hereditary which were developed in the late 19th century have improved agricultural production by enabling farmers select the beat trains in plants and animals. However, the unearthing of the structure of DNA in the mid 20th century was a turning point for biotechnology. This led to a progressive development of genetic engineering technology. Today, farmers need not to choose animals or plants with the best characteristics such as drought, pests and diseases resistant, high yields, early maturity or high quality products due to advancement in biotechnology. Through genetic modifications, scientists can alter the genetic material in the plant or animal to improve on its characteristics (Whitman, p 1). Genetically modified organisms in agriculture refer to plants and animals that are created by scientists to meet desired characteristics using modern molecular biotechnology techniques. To enhance the traits, the genetic material in the organism is modified to meet the desired qualities. This technique has replaced the traditional methods of propagation used by farmers to enhance the desired characteristics through selective breeding which is inaccurate and time consuming. Biotechnology produces organisms of the intended traits with greater precision. For example, today, scientists can extract the gene responsible for drought resistance in plants that do well in deserts and insert it in various agricultural plants to enhance their drought tolerance. Recent research indicates that these genes can also be transferred from plants to animal or from animals to plants. A good example in this case is the genetic modification, Bt maize. The gene responsible for the production of protein in the maize was isolated from a bacterium that was observed to produce a protein as a defense against insects’ larvae. The Bt main therefore has improved nutrients content as well as pest resistance such as stock borer (Herman, p 36). Legitimate concerns about genetically modified organisms There is no doubt that there are several problems associated with genetically modified organisms in agriculture. This has resulted into criticism from different people around the world including some biotechnologists. This is despite the massive promises of the new technology. The greatest concerns has been the players in the agribusiness field concentration on the financial benefit accrued from adoption of genetic engineered crops without considering its impacts on the consumers as well as the environment. This criticism has become intense with various religious and interest groups being opposed to the idea basically because scientists are not certain about the long term effects of genetically modified products on the consumers and the environment (Rader, Para 26). A legitimate argument is based on the fact that man altering the Mother Nature will always have negative consequences. Some of these consequences may be life threatening. This is evident from the current changing weather crisis as a result of man activity. Genetic engineering is more threatening as it touches on the most fundamental part of life, the hereditary material. Religious groups have been opposed to these biotechnology developments due to its threat on the identity of the target species. However, some critics base their argument on ethics since genetic modification technology is closely related to human cloning and human embryo tissues research (Rader, Para 26). The greatest concern on genetically modified food is food security. There are proposals that genetically modified products may not be safe for human consumption. Adoption of genetically modified organisms in agricultural production is a major change in the global food supply and reliable and extensive studies need to be done on their safety. This concern does not affect genetically engineered organisms only but also changes that are as a result of other biotechnological advancements. There is no doubt that biologists are aware of the impacts of what they are doing. They are well informed on the negative consequences of altering the genetic makeup of organisms. However, there are some unanticipated effects of this technology as a result of long term impacts (Rader, Para 26). A very good example was the genetic enhancement of nutritional contents of soybeans. Soybean has been considered as a good source of plant protein for many years. However, research indicates that it lacks methionine, one of the essential amino acids. To enhance the nutritional value of soybeans, scientists isolated a gene responsible for protein production in Brazil nut and inserted it on soybean. However, scientists were unaware that the same gene was the allergens in the nut. A very large number of people are allergic to Brazil nut because of this allergen. This modification could have resulted into unexpected allergic reaction. This was revealed before the product entered the market through testing which led to abandoning of the project. This is clear evidence that genetically modified organisms products need to be extensively tested before they can be consumed by human beings. Though this indicates that testing is done before the products are released, there is no assurance that the products are safe for consumption (Rader, Para 26). One of the techniques used in genetic engineering is induced random gene mutations. This produces numerous genetics which are tested for desired qualities. There are various techniques that are used to induce random gene mutation. This may include the use of radiations of a certain wavelength, use of chemicals or subjecting the genetic materials to high temperatures. This technique relies more on lack when compared to genetic modification where a gene of the desired trait is inserted. This suggests that more tests need to be done on genetically produced organisms using this technique. However, throughout the world, there are no proper regulations that have been put in place to regulate breeding of organism which puts the consumers at a risk. There are no doubts that breeding technologies are creating harmful products accidentally and whose short term and long term effects are unknown. A very good example given in this case was the production of celery using convectional breeding methods. Although the celery produced was of a better variety, it had negative effects on the farm worker who became hypersensitive to sunlight. Other products produced using the same techniques such as Lenape potato was found to contain toxins levels which was fatal (Herman, p 36). The health concerns raised against genetically modified food have affected the perception of the public on these foods. For example, a very large number of children all over the world today suffer from fatal allergies to some animal and plants products especially peanuts. A large number of people associated this with genetic modifications. Although this may not be true, there is a need to think twice about this issue. Most of genetic modifications are aimed at producing fruits and vegetables with fast maturity rate, improved nutrition value, altered ripening behaviors, resistant to diseases and pest and better yields. Unfortunately, these products are given to very vulnerable members of the society. The likelihood of introducing new types of allergen in the fruits and vegetable through genetic engineering is very high. The allergenicity effects of new allergen may have far reaching effects considering that most of the people around the world are suffering from life threatening hypersensitivity (Nelson, p 103). Some scientists have been opposed to the new technology because it is not possible to determine with certainty the effects of genetically modified products on human health. There are still some unknown effects of introducing new genes to crops. It is more likely that there are some negative effects that scientists may not expect associated with genetically modified organisms that are unknown or unexpected by scientists. For example, a recent study suggests that genetically modified potatoes have some effects on the digestive systems of rats. Substantial differences between the digestive systems of rat feed with genetically modified potatoes and those feed with unmodified potatoes. Although these potatoes were not meant for human consumption, it suggests that genetically modified food may not have short term negative effects on humans but can result into modification of body systems which may be detected when it is too late (Whitman, p 1). The unintended harm to some species as a result of adoption of genetic engineering technology in agriculture has attracted a lot of concern on the future of GM in agriculture. These concerns are based on the effects of Bt maize on the population of monarch butterflies. Although monarch butterfly larvae do not consume corn, pollen from Bt maize was transferred to the milkweeds plants through hair carrying with it the anti larvae proteins. The monarch butterfly larvae perished as a result of consuming this pollen. The main concern here is that the proteins in Bt maize was not intended to eliminate the monarch butterflies but unfortunately, it kills larvae indiscriminately. Since it has proved to be difficult to produce GMO crops with toxins that kill only pests, there is a need for evaluation of effects of the genetically modified products on unintended targets (Whitman, p 1). There is developing fear of what is likely to happen if for example, the world corn production became overdependence on Bt maize, and then insects develop resistant to Bt crops and other GM crops as well as convectional pesticides. This may lead to similar problems experienced after some mosquitoes in tropical regions developed resistant to DDT. It therefore suggests that dependence on GMO in agricultural production may be a time bomb. The possibility of creating some plants that can resist certain herbicides creates the possibility of creating super weed. The possibility of the gene transfer process getting to the non targeted species either by mistake or maliciously is of greater concern to farmers. The transfer of herbicide resistant genes to the weeds may result in cross breeding and consequently creation of super weeds. These super weeds will be able to resist the herbicide the same way the crops can. It is possible that some of the genes can be transferred to non-genetically modified crops in the field as a result of cross breeding. This possibility has been proved by the law suit between farmers and Monsanto Company (Whitman, p 1). There are also economic concerns that have been raised against adoption of genetically modified organisms in agricultural production. Introduction of genetically modified crops may have negative economic consequence as a result of costs involved in establishing their markets. Biotechnology companies have invested a lot of resources in the development of GM crops and would like to make profit out of it. However, infringement of patent rights especially in agricultural technology is a big issue. These factors will affect peasant farmers in the developing countries as multinational biotechnology companies try to maximize return on their investment within a short time leading to increased prices of new propagation materials. It is less likely that despite the promise of GMO in averting the food insecurity in the world, farmers will be able to adopt these new varieties of crops (Whitman, p 1). It is clear that this biotechnology technique may not be available to all societies in the world. The resources required for significant genetic engineering research may not be in the reach of many agricultural technology companies all over the world. This creates the worry of a few multinational biotechnology companies controlling global agriculture. There is a possibility of the small companies being wiped out of the market as a result of intense competition. This competition will affect the small scale farmers negatively (Rewavas and Leaver, p 640). Counter Arguments Despite the intense argument against genetically modified organisms in agriculture, the global farming systems are progressively adopting this technology. Criticism has not deterred biotechnologist and multinational companies from developing more genetically modified crops. The intense research on this field and massive investments is clear evidence that there is a market for genetically modified agricultural products and the world is ready to adopt genetic engineering as a necessary technology. The world population stands at over six billion while it is expected to double within half a century. Convectional methods of farming will in no way sustain the ever growing global population. The risk of food insecurity is made more real by the increased changes in climatic condition. Weather has become increasingly unpredictable and unsupportive to agricultural activities. The solution to the challenges is genetically modified crops (Whitman, p 1). Genetic modification creates crops that are resistant to pests. Some GM crops are also fast growing and mature before pests attack the crop. For many years, pest control has been a major concern for farmers due to losses resulting from crop destruction. Large scale and small scale farmers use large amount of pesticides to avert these losses. On the other hand, there is a growing concern by consumers on the safety of chemicals commonly used by farmers to control pests. There are numerous environmental hazards associated with chemical pesticides. The need to use environmentally destructive pesticides can be averted by use of genetically modified crops. Growing Bt corn and other Bt crops has eliminated the need to use pesticides in agricultural production. Although there are concerns that have been raised such as the monarch butterflies saga, these problems can be addressed by improvement of technology (Rewavas and Leaver, p 640). In many cases, it is practically impossible or uneconomical to use physical means of removing weeds from the fields. This calls for farmers to use large amount and many varieties of herbicides to remove the weeds. This is not only time consuming but also expensive making agriculture less profitable. The farmers are also required to be careful in the use of the herbicides to ensure that they have no negative effect on the crops or the environment. Genetically engineered crops can be effectively used to avert these problems. These plans are designed to resists a specially synthesized herbicide with minimum environmental impacts. This reduces the amount of herbicides required and consequently the production cost. Genetic modification has also led to the development of disease resistant crops increasing yields and lowering production costs. Scientists have conducted extensive research in the development of crops that are resistant to disease causing microorganisms (Nelson, p 84). Unpredictable weather conditions have also threatened profitability of agricultural activities. Unpredictable frost can have destructive effect on seedling leading to losses. This has led to the introduction of antifreeze gene in crops such as tobacco and potatoes which is isolated from animals living in cold water. These plants are able to resist very low temperatures where normal plants cannot survive. It is important to note the reduced global agricultural productivity is as a result of unpredictable weather condition. Arable lands are being converted into unproductive land as a result in increased droughts. Moreover, a large percentage of land in the world cannot support agriculture due to lack of adequate supply. Adoption of genetically modified crops by farmers is the solution to this problem. With this technology, farmers will be able to grow crops in areas that were previously considered unproductive due to drought or salinity. This is by modifying crops to withstand drought or high salt concentration in the soil (Rewavas and Leaver, p 640). If genetically modified organisms were adopted in agriculture especially in the third world countries, malnutrition will be a thing of the past. It is observed that as a result of poverty, many people in the developing world rely on a one crop as their staple food. This crop may not contain all essential nutrients required by the body. Genetic engineering has the ability to introduce genes to these crops which will ensure that it contains the essential nutrients. For example, in the developing countries where rice is the staple food, a large number of people suffer from blindness as a result of beta carotene deficiency. However, the golden rice which has been developed genetically was found to contain high amounts of vitamin A. Although this could have been a solution to the problem, massive anti genetically modified food protests have deterred the introduction of the rice to the farmers (Whitman, p 1). There are also proposed uses of agricultural genetic technology in development of plants that produce edible vaccines which could replace the convectional injection vaccines. Scientists are also working on development of genetically modified plants that clean up the environment by absorbing pollutants such as heavy metals from underground water and the soil (Whitman, p 1). Conclusion There are many proposals that genetically modified foods will solve the food security crisis that faces the world. They have been proposed as possible solution to over reliance on pesticides and herbicide in agricultural activities which degrades the environment. However, there are concerns over the safety of the GM products for human consumption. There are many issues that have been raised claiming that GM foods are unsafe for human consumption due to possible allergic reactions and the wide range of unknown and unexpected negative impacts on human health. The long term effects of GMs on the environment may also be far reaching due to loss of identity or elimination of some animal and plant species. Work Cited Herman E. M. , Helm, R. M. , Jung R, and Kinney A. J. â€Å"Genetic modification removes an immunodominant allergen from soybean†. Plant Physiology. 132 (1) (2003): pp 36–43 Nelson, Gerald. Genetically Modified Organisms in Agriculture, ISBN-13: 978-0-12-515422-2, Academic Press Rader, Charles M. A Report on Genetically Engineered Crops, (2001), retrieved on 17th May 2010 from; http://members. tripod. com/c_rader0/gemod. htm. Rewavas A and Leaver C. J. â€Å"Conventional crops are the test of GM prejudice†. Nature 401 (6754), (1999): PP 640. Whitman, Deborah B. Genetically Modified Foods: Harmful or Helpful? (2000), retrieved on 17th May 2010 from; http://www. csa. com/discoveryguides/gmfood/overview. php.

Jk Cement Research Report

Indian Institute of Management, Bangalore PGP Program Term 1, 2012 Final Report for JK Cements – Group 2 Section 1 Business Description: JK Cements is one of the largest cement manufacturers in Northern India and the eighth largest overall India with net cement sales of 2545 crores in 2011-12. Itsmain productsinclude grey and white cement. It produced 53. 2 lakh tons of grey cement and 3. 77 lakh tons of white cement in the financial year 201112. Grey cement produced consists of Ordinary Portland Cement (â€Å"OPC†) and Portland Pozzolana Cement (â€Å"PPC†). Their cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J. K. Super for PPC products and J. K. White and Camel for white cement products. JK Wall Putty and JK Water proof are its white cement based value-added products. Housing (74%), infrastructure (17%), commercial & institutional sector (13%) and industrial sector (6%) are the major customers of the cement industry [Refer Figure 1]. Housing constitutes a major chunk of the demand and hence rural and urban housing projects are a key resource generator. Key stock statistics and revenue/earnings data is included in the appendix [Refer Tables 1& 2]Section 2 Market Profile, Competition, Strategy, Risks A. Market Profile: The demand for cement mainly depends on the level of development and the rate of growth of the economy. The major demand drivers for the cement sector in India are housing, infrastructure and commercial construction. These are key components of the country’s GDP and hence, the average growth of the cement industry is approximately 1. 2 times the GDP growth. Significant impetus to both rural and urban housing as per capita income increases in a major driver of the industry.With the increase in national infrastructure investment, the industry is poised to expand further in spite of the worldwide economic recession. The housing sector contributes around 64% of the tot al cement demand. It also accounts for 80% of the total real estate developments in the country. Housing demand is expected to be robust backed by various measures adopted in the budget like continued interest subvention up to 15 lacs, exemption from service tax for low cost housing construction, and increase in investment-linked deduction of capital expenditure on low-cost housing from 100% to 150%.There has been a major push by the government in infrastructure development with the intended investment being US$ 1 trillion in the 12th five year plan period (2012-17), against an investment of US$ 514 billion in the 11th five year plan period. Massive investment in infrastructure would provide boost to Indian Cement industry. India is the second largest producer and consumer of cement in the world, accounting for 7-8% of the total global production with an installed capacity of over 300 Mtpa at the end of 2011-12. India’s cement industry performed better in 1 011-12, on back of robust demand revival in the second half of the financial year. The industry grew by 6. 4 per cent in 2011-12 as against less than 5 per cent in 2010-11. Total cement sales were 223. 02 MT compared with 209. 5 MT in FY11. For 2012-13, CRISIL Research estimates cement demand to increase 7-8 per cent yoy (Crisil). In the near term, demand could be a little weak because of the lower GDP growth. Given that a large part of the demand comes from the housing sector, high interest rates are not conducive to the urban real estate demand. However, in the long term, the industry is expected to grow at an average of 1. times the GDP growth rate. Growth rates of 8-9% can be targeted for the five year period given the increase in investment in infrastructure projects and increasing rural demand. Although India is one of the largest cement markets in the world, per capita consumption of cement is still low as compared to the world average as well as that of other large countries such as China and US. The Indian cement industry, thus, has a huge growth potential. Given the intense shortage of housing, this segment has been a major growth driver for the cement industry.The demand for residential real estate has only increased, fuelled by increasing urbanization, rising income levels, decreasing household sizes and easy availability of home loans. Bulk of the total shortage of 74 million units at the end of the 11th Five Year Plan (2007-2012), is expected to be generated by rural and below poverty line households. The government has launched various initiatives such as NREGS and Indira AwasYojana to improve rural income, which may increase demand for rural housing in the country. Increased infrastructure investments by the government as mentioned earlier is also likely to be a major growth area.Housing (74%), infrastructure (17%), commercial & institutional sector (13%) and industrial sector (6%) are the major customers of the cement industry. Housing constitutes a major chunk of the demand and hence rural and urban housing projects are a key resource generator. Overall industry margins and change in sales trends are mentioned in tables at the end. [Refer to Table 3 & 4]. Please refer to Table 5 for a picture of the industry growth rate based on the Free Cash Flow model where the average P/B was computed with the top 5 firms of the industry and different rates for cost of capital were assumed.This shows that the cement industry is poised for growth for whatever cost of capital that may prevail. B. Competition: Inter firm competition and rivalry in the industry is high. Large number of players, intermittent overcapacity, marginal product differentiation, high storage cost and high exit barrier in form of significant capital investment has led to high competition in the industry. Threat of new entrants is limited since it involves high capital investment, broad distribution network and oversupplied markets deter new entrants.However, given the high potenti al for growth, quite a few foreign transnational companies have made acquisitions and increased their stake in domestic companies to gain full control. There are no good substitutes for cement popular in India. However, there are eco friendly substitutes for cement which include fly ash and slag. Fly ash is the by product when coal is burnt to make electric power and slag is created when producing iron in blast furnaces. Coal fly ash, blast furnace slag and other mineral admixtures can substitute for cement, aving energy and reducing cost. Bitumen in roads and engineering plastics in building are some element of competition. Currently, the top players – UltraTech, ACC, Ambuja Cements, Jaiprakash Associates, India Cements and Shree Cement, collectively control more than half of the cement market in the country. Overall, there are 40 players in the industry across the country. (Source: ibef. org) The closest competitors for JK Cement are Shree Cements, Madras Cements, Birla Cor poration and Binani Cement. The industry has a 4-firm concentration ratio of 58. 18%. 2 C. StrategyDespite challenges, JK Cement has increased revenues and profits owing to higher realisation and volumes in both grey cement and white cement business. The company is in on its way to expanding its capacity in India to cater to the increase in cement demand. It has also diversified its product portfolio by not only limiting itself to varieties of grey cement but also extending to white cement and other value added products. Besides, the Company is also setting up a grey cum white cement plant at Fujairah in UAE to cater to GCC and African markets. The company is making efforts to reduce operating expenses which in turn would increase the ROE.Some of the efforts to reduce operating costs are: Grey Cement †¢ Implementation of CII Audit findings in phased manner to reduce power consumption. †¢ Installation of VFDs in fans to save power. †¢ Replacement of booster fans by hig h efficiency fans to save power. †¢ Installation of pfisterpump for coal firing in calciner. †¢ Replacement of Raw mill -1 separator by high efficiency separator. †¢ Dynamic separator in Coal Mill. White Cement †¢ Covered clinker storage facility for grey and white clinker. †¢ Grinding plant for dolomite for putty product. †¢ Installation of new SG Fan & Driver. The company is also making efforts to increase its capacity.The company is revisiting the size of proposed expansion plan at Mangrol, Rajasthan from earlier envisaged 3. 5 Million Tons to around 2. 5 Million Tons, on account of delay in allotment of new mining area to the Company. Viability study for 2. 5 Million Tons capacity plant is under preparation and a final decision will be taken during the course of the year. D. Risks Three most important risks: 1. Sustained economic slowdown The growth of cement industry is directly proportional to GDP growth rate. Absence of decision making at Governm ent level is affecting economic growth and may have adverse effect for the cement industry.If measures are not adopted against inflation, high interest rates, depreciating rupee, then it would impact the overall economic growth of the country resulting in dragging the sector down. 2. Unavailability of coal linkages Coal costs constitute 14-23% of cost of production of cement. The hike in coal prices is expected to hit the margins. Due to reduced supply of coal linkers from Coal India over the years; the company has to import coal at higher costs from South Africa and Indonesia. The depreciation of the rupee will also add to the increased cost of raw materials. 3.Adverse demand-supply mismatch In case, the additional capacities get commissioned ahead of schedule, then a state of oversupply would rise, consequently prices may head downwards and the sector may suffer a severe blow. Section 3 3 Trend Analysis The demand for the cement mainly depends on the rate of growth of infrastructu re, housing and commercial construction. In Indian context all these areas have been experiencing a significant growth as a result of constant growth in our GDP. As a result we can see that overall the total revenues for both the companies have been rising [Refer to Figure 2].JK Cement and Madras Cements basically cater to northern and southern India respectively. In year 2011, there is a dip in the total revenues of Madras Cement. This was result of a more acute fall in the capacity utilization observed in southern India due to low demands because of political instability in Andhra Pradesh and minimal pick-up in demand in Tamil Nadu and Kerala post elections. The two industries exhibit comparable trend as far as profit margins are concerned [Refer to Figure 4]. So, an overall analysis of cement industry in this period is required.In 2008, the dip can be attributed to reduced demands due to global recession, which reduced capacity utilization thus reducing profits. In 2011, there wa s marginally poor off take in cement demand due to passive construction activity, which lead to excess supply and utilisation fell to a 13-year low of 83. 9% for 2010-11. This has been coupled with rise in input costs, especially prices of coal and petroleum products. As a result, both the top line and bottom line have been affected. Hence this year the capacity utilization increased and the demand dropped. Section 4 Ratio Analysis [Refer Table 6] . Return on Equity : [Refer Fig. 5] ROE has been hovering around 17-20% throughout with some years seeing slight changes. Given that Index of Industrial Production(IIP) grew only by around 2. 8%, it appears that JK and Madras have both done well. However, 2010-11 was a bad year for JK Cements. Their Net Operating Profit plummeted by 39% when compared to the previous year while the same for Madras Cement was only around 27%. This was mainly on account of reduction in sales realisation and substantial increase in the prices of petcoke and fu el resulting in higher input costs (Annual Report 2010-11).This caused the ROE of JK to fall by almost 600% from the previous year. 2. Basic DuPont Model Analysis : [Refer Fig. 4,5 and 6] ROE = Asset Turnover * Profit Margin Asset Turnover of JK is consistently higher when compared with Madras Cements – 42. 46% higher in 2006-07 while this is 39. 87% in 2012. This is because JK’s total fixed assets is lesser than Madras’ by almost 50% while sales of Madras Cements is higher only by around 2025% on an average . However, the low profit margin throughout has been causing the Return on Equity of JK to be lower than that of Madras Cements.The profit margin has been very low in all the years from with the worst hit being in 2011 – reason explained in step 1. Also the Net Financial Rate has dinted the net profit due to expansion efforts coupled with the dim outlook in the industry. A ray of hope for JK would be to perform product differentiation with the white c ement – wall putty market ; it has done right by expanding the white cement units in overseas ; the demand for interior and decor is bound to increase in the near future. 4 3. Advanced DuPont Model Analysis with RNOA & Leverage : [Refer Fig. & 12] It can be seen that the Operating Spread of JK is going negative for 2010-11 & 2011-12 showing that their Financial Rate is on the rise which is due to debts from increased expansion plans. This, along with the increased leverage from high borrowing, has reduced the already low RNOA to yield a poor ROE value. In the same while, for Madras Cements the spread has been positive – in fact, it has never gone negative for them, despite their large debt. Madras Cements has been affected only by the overall increase in costs in the cement industry and not by the leverage effect which JK has suffered from.The leverage effect has beaten JK again in 2011-12 ; though their RNOA has increased by 177% from the previous year and long-term d ebt has actually reduced, the Interest Rates on loans have seem to have gone up – leading to a 117% increase in the NFR. Thus the negative operating spread has again caused JK’s ROE to fall below the RNOA – Madras Cements has remained stable in this period – registering a higher ROE than RNOA due to the positive spread. Again, this shows that Operating Margin of JK is low when compared with the cost of capital. 4. Analysis of Turnover ratios [Refer Fig. 9 & 0] Inventory Turnover and Debt Turnover of JK is considerably higher than that of Madras Cements leading to a better operating cycle. Low inventory holding and low receivables isa positive trend for JK Cements and it should continue this. 5. Analysis of Liquidity and Long-term Solvency : [Refer Fig. 8,11] The Quick Ratio of JK is consistently higher than Madras Cements for all the 5 years taken into consideration – hence the liquidity position of JK is better than that of Madras Cements. The cap ital structure seems more of debt financing in the recent years – owing to expansion plans.However increase in interest rates would make JK vulnerable to low margins which is already discussed in the advanced model. Section 5 – Conclusion – – – The cement industry is estimated to grow as can be seen from the CRISIL analysis quoted in section 1; housing and infrastructure demand are expected to increase – hence JK is bound to do well The cost reducing efforts of JK and the product differentiation into white cement are expected to increase profit margins. The Asset Turnover values of JK are also higher than its competitor. Hence increase in ROE is expected in coming years.The reduced operating cycle of JK shows a positive trend vis-a-vis its competitor. P/B value of JK is 1. 18 while industry average (top 5 firms) is 2. 76 (refer to table on Growth of Cement Industry). Hence JK stock seems to be undervalued [Refer Table 5] JK has declared 50% dividend for the current year and has consistently declared dividend for the past 5 years. However, the inherent risks in the industry – from global crises like the Euro crisis and flagging coal availability pose concerns for the successful implementation of plans.Further, the continuous expansion plans of JK leading to higher debt and hence higher interest rates (which can rise based on RBI measures to contain inflation) cause concern for the profit margins which can again reduce. The positives seem to be strong as JK is trying to stabilize its expansion plans. Hence an acute negative view point would not be correct. Hence we suggest a buy/hold after doing the above analysis. 5 References : – Crisil. (n. d. ). Retrieved August 21, 2012, from Crisil Web site: crisilresearch. com – Dion Insight. (n. d. ). Retrieved August 21, 2012, from Dion Insight Web site: https://insight. ionglobal. in/Insight/Industry. asp? pageLink=IndProfile&Ind=151 – equitymaster. com. (n. d. ). Retrieved August 21, 2012, from equitymaster. com: http://www. equitymaster. com/research-it/sector-info/cement/Cement-Sector-AnalysisReport. asp – Gupta, N. (n. d. ). Ernst & Young. Retrieved August 21, 2012, from Ernst & Young Web site: http://www. ey. com/Publication/vwLUAssets/cementing_growth/$FILE/cementing_growth. pdf – India Brand Equity Foundation. (n. d. ). Retrieved August 21, 2012, from India Brand Equity Foundation Web site: http://www. ibef. org/industry/cement. aspx – Jagdesh Sunku. 2006). Advantages of using fly ash as supplementary cementing material (SCM) in fibre cement sheets. 10th Int. Inorganic Bonded Fibre Composites Conference, (pp. 25-32). Sao Paulo. – JK Cement Annual Report 2010-11 & 2011-12. JK Cement. – moneycontrol. com. (n. d. ). – PlanningCommision. (n. d. ). Planning Commission. Retrieved August 21, 2012, from Planning Commission Web site: http://planningcommission. nic. in/plans/mta/11th_mta/c hapterwise/chap14_invest. pdf 6 Appendix A Division Figure 1: Division of customers of cement industry into major sectors Major Major customers of cement industryCommercial & Institutional 13% Industrial 6% Infrastructure Infrastructure 17% Housing 64% Figure 2: Total revenue for JK Cement & Madras Cements Ltd. (Revenue in crores)(Before 2005 financial financial statements for JK Cement wasn’t prepared. It was then treated as a division under JK Groups for financial purposes) Total revenue 3,500. 00 3,000. 00 2,500. 00 2,000. 00 1,500. 00 JK Cement Madras Cements Ltd. 1,000. 00 500. 00 0. 00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 7 Figure 3: Change in sales % change in sales 60 50 JK Cement Madras Cements Ltd. 40 30 20 10 0 -10 -20 2003 2004 005 2006 2007 2008 2009 2010 2011 2012 Figure 4: Profit Margin Profit margin 25. 0% JK Cement Madras Cements Ltd. 20. 0% 15. 0% 10. 0% 5. 0% 0. 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Figure 5: Return on Equity ROE (%) 60 JK Cement 50 Madras Cements Ltd. 40 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12 8 Figure 6: Asset turnover Asset turnover (%) 110 JK Cement 100 Madras Cements Ltd. 90 80 70 60 50 40 2007-08 2008-09 2009-10 2010-11 2011-12 Figure 7: Return on Net Operating Assets RNOA (%) 40 JK Cement Madras Cements Ltd. 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12Figure 8: Debt – Equity Ratio Debt – Equity Ratio 2. 5 JK Cement Madras Cements Ltd. 2 1. 5 1 0. 5 0 2007-08 2008-09 2009-10 2010-11 2011-12 9 Figure 9: Spread Operating Spread 0. 5 JK Cement 0. 4 Madras Cements Ltd. 0. 3 0. 2 0. 1 0 -0. 1 2007-08 2008-09 2009-10 2010-11 2011-12 2010-11 2011-12 -0. 2 Figure 10: Holding period Operating Cycle (days) 120 JK Cement Madras Cements Ltd. 100 80 60 40 20 0 2007-08 2008-09 2009-10 Figure 11: Quick ratio Quick Ratio 2 JK Cement Madras Cements Ltd. 1. 5 1 0. 5 0 2007-08 2008-09 2009-10 2010-11 2011-12 10 Figure 12: Net Financial Rate NFR 0. 18 JK Cement 0. 6 Madras Cements Ltd. 0. 14 0. 12 0. 1 0. 08 0. 06 0. 04 0. 02 0 2010-11 2011-12 11 Appendix B: (Tables) Table 1: Key stock statistics Stock Report| 24 July 2012 |Symbol : JKCEMENT (NSE); JKCEM (BSE); ISIN NUMBER INE823G01014 J K Cements Stock Price (closing) Investment Style 213. 30 (as of 20 July 2012) Large CAP Sector Cement Summary : JK Cements is one of the largest cement manufacturers in Northern India ; it is the second largest white cement manufacturer by production capacity in India Key Stock Statistics 52 Wk Range 95. 80 to 219. 70 (BSE) 25. 36 8. 41 11,839 EPS (Twelve Month Trailing)P/E (Twelve Month Trailing) 10K investment 5 yrs ago Credit Rating Long Term Bank facilities Short Term Bank facilities Common shares outstg. 69927250 Market Cap Yield (%) Dividend rate per share 1491. 55 Crores 2. 34 5 A+(CARE) A1+(CARE) Table 2: Earnings per Share Earnings Per Share of 10 each ( ) June Q1 September Q2 2011-12 7. 14 0. 51 2010-11 4. 22 -2. 98 2009-10 10. 04 9. 35 December Q3 6. 22 0. 26 6. 65 March Q4 11. 49 7. 66 6. 28 Year 25. 36 9. 16 32. 32 ? ? ? ? ? ? ? ? Table 3: Industry Margins OPM(%) GPM (%) NPM (%) Mar ‘12 21. 78 21. 49 9. 14 Dec ‘11 19. 65 18. 45 10. 13 Industry MarginsSep ‘11 15. 66 13. 6 5. 05 Jun ‘11 24. 41 22. 48 11. 76 Mar ‘11 22. 46 20. 9 11. 92 Dec ‘10 17. 18 15. 32 5. 84 12 Table 4: Industry sales Mar ‘ 12 Industry sales (in crores) % change Change in industry sales (quarter)(%) Dec ‘ 11 Sep ‘ 11 Jun ‘ 11 Mar ‘ 11 Dec ‘ 10 20841. 87 17953. 16 15649. 20 17017. 73 17388. 15 14201. 79 16. 09026 14. 72254 -8. 04179 -2. 1303 22. 43633 Table 5: Industry Growth Projections (for different values of ‘r’) using Free Cash Flow Model Company Name Ultratech Ambuja ACC Shree Cements Madras Cements India Cements JK Cement Average P/B ratio as on 26/08/2012 3. 66 3. 64 . 5 4. 55 2. 19 0. 68 1. 14 2. 765714286 ROE (from March 2012 BS) Cost of Capital (%) Growth (%) 19. 02 15. 28 18. 42 10. 55 18. 78 7. 21 13. 75 14. 71571429 10 11 12 13 14 7. 329288 8. 895631 10. 46197 12. 02832 13. 59466 Table 6: Ratio Calculations Ratios Profit Margin (%) Asset Turnover (%) ROE (%) Return on Assets (%) Net Operating Profit Margin (%) Net Operating Asset Turnover (%) Return on Net Operating Assets (%) = NOPAT/Avg. Net Operating Assets JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras CementJK Cement 2011-12 8. 154156 12. 06512 77. 80004 55. 62438 17. 04343 20. 87036 6. 343937 6. 711146 10. 83703 15. 17511 139. 8798 83. 81691 15. 15882 2010-11 1. 654139 7. 964254 79. 85371 47. 82047 3. 49563 12. 67786 1. 320891 3. 808544 4. 320325 11. 0728 126. 2029 68. 65512 5. 452374 2009-10 10. 84236 12. 59667 88. 57764 56. 65368 22. 29768 25. 09332 9. 60391 7. 136478 12. 51604 16. 10394 160. 5309 81. 84813 20. 09211 2008-09 8. 421552 14. 40591 94. 35595 63. 17162 16. 78291 32. 91344 7. 946235 9. 10 0446 10. 11265 17. 00776 212. 7993 93. 59998 21. 51965 2007-08 16. 62175 20. 30998 107. 4567 75. 2185 41. 51821 50. 27496 17. 86118 15. 31816 17. 88877 21. 64552 209. 9905 128. 6868 37. 5647 Madras Cement 12. 71931 7. 602044 13. 18078 15. 91926 27. 85493 13 Interest Coverage (%) Leverage – Measure 1 Debt-Equity Ratio Current Ratio Quick Ratio Debt Turnover Debt Collection Period (days) Inventory Turnover Inventory Holding Period (days) Operating Cycle (days) NFO NFE NFR Op. Spread FLEV*Spread ROE = RNOA + FLEV*Spread (Advanced Dupont Analysis) JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras CementJK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement JK Cement Madras Cement 392. 0551 615. 8751 2. 686571 3. 109805 0. 837413 1. 0309 99 1. 197299 0. 601965 0. 833253 0. 343679 35. 22924 16. 62681 10. 21879 21. 65177 5. 924257 5. 223089 60. 76712 68. 92473 70. 9859 90. 57651 401. 46 1719. 03 68. 278 101. 808 0. 170074 0. 059224 -0. 01849 0. 067969 -0. 01548 0. 070076 13. 61077 19. 72691 254. 5852 468. 6705 2. 646419 3. 328794 1. 150731 . 609198 1. 367937 0. 931981 0. 916991 0. 599238 33. 11155 15. 49891 10. 87234 23. 22745 7. 497843 4. 941565 48. 01381 72. 85141 58. 88615 96. 07886 802. 04 2307. 32 62. 958 81. 466 0. 078497 0. 035308 -0. 02397 0. 040713 -0. 02759 0. 065515 2. 693658 14. 15354 666. 585 579. 4166 2. 321729 3. 516204 0. 939762 1. 647142 1. 144753 1. 00381 0. 764784 0. 639154 30. 43733 22. 88671 11. 82758 15. 72965 8. 619538 5. 233222 41. 76558 68. 79127 53. 59316 84. 52092 705. 23 2034. 43 34. 363 98. 455 0. 048726 0. 048394 0. 152195 0. 083413 0. 143027 0. 137394 34. 39482 26. 92014 619. 7696 717. 6917 2. 112058 . 616684 0. 580401 1. 954809 1. 968687 0. 982285 1. 675142 0. 628742 30. 17987 33. 40915 11. 92848 10. 77549 10. 69177 6. 127751 33. 67075 58. 74912 45. 59923 69. 52461 -143. 99 2006. 67 28. 147 65. 807 -0. 19548 0. 032794 0. 410675 0. 126398 0. 238356 0. 247085 45. 35528 40. 62774 851. 7743 1451. 897 2. 324494 3. 28205 0. 626681 1. 714777 1. 762163 1. 019801 1. 467784 0. 702189 26. 72182 31. 59228 13. 47214 11. 39519 10. 49671 6. 782897 34. 29647 53. 07467 47. 76861 64. 46986 37. 91 1183. 64 20. 216 26. 782 0. 533263 0. 022627 -0. 15762 0. 255922 -0. 09877 0. 43885 27. 68721 71. 73993 14

Sendong Report

It was a test of faith. Never were the Kagay-anons expecting that such a violent storm which hit the City of Cagayan de Oro, would kill their loved ones, and eventually their livelihood. Typhoon Washi, popularly known as Sendong which struck the Northern part of Mindanao on the early hours of December 17,2011 not only destroyed the city physically but as well as washing away devastatingly the social, political and the economic faiths of the city.The effects of heavy rains in the evening of 16 December until early morning of 17 December, the high tide occurrence and the debris into the river worsened the force of flash flood that impacted the catastrophe (National Disaster Risk and Management Center, 2012). People were sleeping around 2:30 a. m. when the flash flood strikes fierce fully resulting to a haunting tragedy which recorded a death toll of 674 in Cagayan de Oro according to the Final Report on the Effects and Emergency Management re Tropical Storm â€Å"SENDONG† (Washi ) prepared by the National Disaster Risk and Management Center (10 February 2012).Barangay 17, within the prior area of Cagayan de Oro City was one of the areas severely hit by the catastrophic phenomenon, and obtained the greatest share of recovery support. Sustenance and rehabilitation figures are roughly in line with the region–wide numbers. Hundreds of organizations, agencies and thousands of people from all walks of life all over the world share anything that they could give heartily, might be as in cash, in kind, service, and even in thoughtful concerns expressed through social media like Facebook or Twittter in helping to rebuild shattered communities among the 41 City barangays affected by the typhoon.Billions, translated from different currencies to pesos were commended, making this the largest post disaster recovery and extension undertaking commenced for the last 12 years in the Philippine history due the highest number of casualties and damages (CALONZO, 18 Decemb er 2011), City government provided financial assistance ranging from Php 2,500 to 9,000 for each family reliant on the amount of damage and has a significant figure of Php6, 885, 000 as financial aid to each family.Estimated damage of 10000 received financial assistance amounting to 2500; 20000 to 35000 received Php3500 ; Php 35000 to 6000 worth of damage received Php 4,500 ; Php7000 to 100000 cost of damage received Php 6,000 ; 120000 to 300,000 received Php 7,000 to 8000, and damage ranging Php350000 to 3,000,000 got 9,000 financial assistance. In line of President Benigno Aquino III directive for immediate aid efforts for ongoing relief undertakings, a December 28, 2011 press release from the Department of Budget and Management (28 December 2011) indicated Php336. M was added to Department of Social Welfare and Development. Government through Department of Social Welfare and Development had facilitated the delivering of food supplies and financial assistance to the affected commu nities.Red Cross Organization has also demonstrated efforts on providing relief items and medical assistance. Various organizations such as churches, charitable groups as well as radio and TV station have showed goodwill and kindness amidst adversity.In Barangay 17, nearby churches such as United Christian Church in the Philippines and Iglesia ni Kristo have offered free water and sack of rice during that time. Magnum Radio, DXCC provided clothes, canned goods and mineral water for aiding immediate needs while ABS-CBN Sagip Kapamilya along with various celebrities like Robin Padilla, Kris Aquino and GMA Center Mark Bautista handed relief goods and supplies.Blanco (28 July 2012) on her article Krusada: Cagayan de Oro, 7 months after Sendong, cited an establishment of a total of 6000 shelters prepared by Habitat for Humanity Philippines in which 12 houses are finished daily by Non-Government Organizations, and after 6 months, 3000 quadruplex would be ready for settlement. The purpose of this research is to conduct a study to the barangays in Cagayan de Oro city affected by Sendong, with Barangay 17 being selected as our subject area of research.It aims to determine the loss felt by the residents, either by physical or life, and most importantly to categorize the interventions/ assistance received by the victims in the aforementioned community. Based on the information gathered through the conducted in-depth interview, the researchers have found out that as to the said barangay, most of the houses were flooded with mud and dirt especially those houses built near the river, but only few were being damaged reflecting parts of the houses and roofing’s washed out unlike with what Sendong brought a great damage to areas like Macasandig and Balulang.Only few residents decided to be relocated to the relocation sites provided by the government such as the Calaanan Permanent Site (phase 3) and Indahag Permanent Site (phase 1) with personal reasons such as the famil y lived there for almost 30 years, and owning properties which are being inherited and passed on through generations. In addition, not all of the affected residents have received assistance as to what others do have.As to the statement of Lenie Duhaylungsod, 44 years old, stated through an interview, revealed that she have not received any assistance from Red Cross, where in fact her neighbors have already obtained relief goods and medical kits from the said organization. As we interviewed Rowena Cabunilda, a 50 year old Lechonan business owner, she relates that she have suffered much as to the damage brought by Typhoon Sendong to her livelihood. A venture established and existed for almost seven years, Rowena have never thought that residing near the river would cause the loss of her long-time earned business.With a starting capital amounting to Php10, 000, she had earned a lot for continuing the business making her a successful entrepreneur reflected through her beautiful, million peso priced house as well as her other properties including a business land (she asked us to limit the discussion only to her Lechonan business), further stating that her other properties were not devastated as these were located far from their barangay. In the aftermath of Sendong, there’s only 16 hogs left from the 56 ready to be sold s Lechon, almost 21,000 projected net loss of income for that season which is Christmas, and a loss amounting Php 50, 000 summarizing her capital resources reflected in terms of money as well as with the structure of her Lechonan house.â€Å"Receiving relief goods from the government and financial assistance worth Php 4,000 just for one month, I don’t think if it could be able to sustain us and help us in the recovery of the Lechonan business, which I believe would definitely take two to three years,† she stated. In Barangay 17 alone, 47 are being hospitalized, and 2 were reported dead due to Leptospirosis disease† accordi ng to Honorable Heracleo W. Calinawan, Barangay Captain of Barangay 17. A total 43,507 families being affected here in Cagayan de Oro City, while those being evacuated to 19 relocation sites counts to 6,574 families or a total of 38,985 people. â€Å"Here in our barangay, only few are to be counted being relocated to relocation sites,† Brgy. Capt. Calinawan added.Though these people are being affected by the devastation caused by the storm, but still they can’t leave their own houses and properties, especially the businesses they still have and could still be build back. Known as one of the barangays here in Cagayan de Oro sustained with Lechonan business, Barangay 17 Lechonan owners suffered the loss of livelihood , loss of income generated and yet to be generated , and the resources and capital started and produced for building the business.While some residents affected were skilled workers and self-employed who were not exempted by the negative effects brought by th e catastrophe, most of these respondents claimed of having an income of 100-150 a day less with daily expenses incurred of almost 170-200 a day, further declared that the destruction caused by Sendong put them into much upsetting and distressing life of poverty. Different nations of different forms of administration and leadership united to commit and lend a helping hand to the mourning land of Northern Mindanao.As to a report from ABS-CBN News on December 20, 2011 Obama extended his sympathies â€Å"On behalf of the American people, I wish to express my deep condolences for the tremendous of life and devastations caused by recent flooding in the Philippines. † while his secretary, Hillary Clinton also communicated her commiserations, further stated, â€Å"America stands ready to assist Philippine authorities as they respond to this tragedy. (Ressa, December 18, 2011) while the Spanish King Juan Carlos and Queen Sofia are in close contact in accordance to the report of Calon zon of GMA News TV (22 December 2011)It will take a period of three to five years before the full recovery would be felt by the affected barangays of the so-called City of Golden Friendship ( including Barangay 17 to the count) , as observed by UN Special Representative for Secretary-General for Disaster Risk Reduction Margareta Wahlston. Tiangco, 29 January 2012). While the United Nations are busy forecasting the time frame to bring back Cagayan de Oro better, National Economic Development Authority (Quiros, February 23, 2012) in its Strategic Action Plan presented a significant figure of Php 43B; the Northeren Mindanao requires for it to return to its past life and to its earlier picture before the tragic event hits.With half the total percentage of the damaged infrastructure already repaired with the aid of Negros Oriental government (Aranas, December 29, 2012 ) ; Sustainable Livelihood Assistance and Cash for Work programs leading to the provision of cash grants, rehabilitation projects and creation of livelihood strategies to assist affected residents initiated by DSWD ; Self-Employment Kaunlaran Associations(SKAs) which provide income generating opportunities such as sari-sari, farming, livestock raising, food processing, dressmaking, shell craft and fish vending ; permanent resettlement to already rebuilt houses ,and shelters provided by government and private agencies; and the numerous seminars, trainings and programs which demonstrates how the survivors would be well-settled, economically provided and recover sustainably: survivors are on their way of building back what was deemed lost.This study sought to identify the various modes and means as to which the victims of the 2011 Sendong typhoon tragedy which struck and affect the livelihood of Kagay-anons , specifically the affected communities in Barangay 17 had recover and recuperate their livelihood few months after the storm, the different interventions and assistance they received from the governm ent and non-government organizations, and as well as to ascertain the probable time frame as to which the Barangay 17 Sendong survivors would be fully recovered.Being a student with a financial management degree, it would be helpful enough to provide us students the knowledge onto what kind of livelihood these people need and ought to have being survivors of the devastation, and these gathered information would be useful enough for government and non-government institutions assigned in the field of livelihood center programs to provide sustainable livelihood for the affected communities.In the future, the end-result of this study would be useful for researchers and business people in determining the needs of the aforementioned affected communities and later would think of any kind of livelihood/job they would introduce to these communities aiding them towards livelihood recovery and sustainability. Data obtained from actual encounter with the victims turned survivors would further p rovide a much clearer understanding as to what was really the exact event, how did it occur, how did it affect and devastate lives, how much was the cost of damage, how long would the people be fully recovered, what are the strategies prepared and effected by government , international and non-government organizations to help, assist and ensure short to long term recovery and sustainability of the victims,etc.Lots and infinite questions could be made available with accurate and precise answers from actual intervention compared to just being information dependent from mere broadcast and social media, and random hearsays. Nothing would prove to be the best if fact-finding has to be initiated and enacted through proper, formal and accurate procedures. For almost six months of humanitarian aiding, it had resulted to further development on the despair and agony of Barangay 17 Sendong victims. Although the recovery might be deemed relaxed and gradual, but still the affected residents of t he 17th Barangay of Cagayan de Oro struck by Sendong continue to pursue the aspiration to attain full recovery and sustainability before another one bites the dust. FRAMEWORK This study is anchored on the theory of Dr.Jacqueline Carol Badcock, the United Nations resident coordinator and humanitarian coordinator in the Philippines, â€Å"Livelihood recovery is crucial to help communities recover from the crisis and to build people’s confidence that they can move on†. Every people have its own process or way of recovery, it still depends on the capacity of individual This study is based on the capacity of the families affected by typhoon Sendong to recover and sustain financially with the available resources they have and how they used the different interventions and assistance they received from the government and non-government organizations to bring back their livelihood. Livelihood is a means of making a living.It encompasses people’s capabilities, assets, inc ome and activities required to secure the necessities of life. A livelihood is sustainable when it enables people to cope with and recover from shocks and stresses (such as natural disasters and economic or social upheavals) and enhance their well-being and that of future generations without undermining the natural environment or resource base (Carney, 1998,pg. 4) The core elements of the framework are the profile of the respondents in terms of civil status, educational attainment, number of children(if married), type of livelihood, years of residency in the barangay, starting capital, place of origin, monthly income generated from the livelihood and other sources of income.Civil status is the registration of individual status due to birth or any changes in personal situation such as marriage, divorce, or death (Slim, 2010). The purpose of which is to know the current marital status of the respondents of whether the victim supports a family or not. Educational attainment refers to t he highest level of schooling that a person has reached (Statistics Canada, 2011). This is necessary to identify the common level of education of each family on the specific location. Number of children refers to the number of offspring a family has. This is included to know how many children each family supports the main purpose is to know if the family income is enough to support the family.Type of livelihood refers to a set of economic activities, involving self-employment and/or wage-employment by using one’s endowments (human and material) to generate adequate resources (cash and non-cash)for meeting the requirements of self and the household, usually carried out repeatedly and as such become a way of life (Mahajan et al, 2004). This is essential to know the family’s way of living, of how they earn and support their family whether it be by employment or business ventures. Years of residency refers to the time during which a person resides in a place (Livelihood, D ictionary online, 2013). This is also identified to know whether the family is new or has been living for many years already in the barangay. Place of origin refers to where something originated or was nurtured in its early existence (Farlex Inc, 2013).This information is also essential for the researchers to know where the family originally came from. Starting capital refers to the money that is required to start a new business, whether for office space, permits, licenses, inventory, product development and manufacturing, marketing or any other expense ( Startup capital, Investopedia Online, 2013). This is to know the amount of money used by the family to start their livelihood again. Monthly income generated from the livelihood refers to the the amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments (Farlex Inc, 2013).This is to know the total amount of money the family receives from their livelihood and whether the family’s income is enough to support the needs of the family as well as to know the capacity of the family to recover financially. Other source of income refers to earnings report used to represent income from activities other than normal business operations ( Webfinance Inc. , 2013). This is included to know whether the family earns money aside from their employment. These detailed personal information is required for documentation and for future analysis of this entire research. Another element used in the framework is the types of loss experienced by the victims whether physical loss or life loss. Physical loss here refers to any damage done to a property (Webfinance Inc. , 2013).It includes properties, objects, and valuable resources lost by the victims as a result of the casualty of the flood. This deals with the properties or establishments owned by those families who has small business but now was washed out by Sendong. This could also be appliances destroyed by the typhoon such as television set, dvd player, component, computer, laptop, refrigerator, washing machine, cook wares like microwave oven, blender, electronic kettle, and small gadgets like cell phone, tablet and many more. This element is necessary to identify the common properties lost by the affected families and to what extent the flood caused damage to the victims.Life loss here refers to the number of family members who survived, how many have died and whether they were able to recover the dead body, how many were missing and what are their experiences during and after the calamity and on how they survived from their everyday living. Interventions or assistance received by the victims is another element used in the framework for the purpose of which is to know the specific intervention and assistance each family received from the disaster and for the researchers to know which specific organization whether it be from the loca l(municipal), provincial, national government, the non-government organizations who provided the victims with the assistance. The interventions/assistance received by the respondents are divided into two: private interventions and public interventions.To be included in the private interventions are the private sectors, industries, entities, non- government organizations both local and international, and people which and who provided interventions/assistance to the survivors of typhoon Sendong. To be included in the public interventions/assistance on the other hand, would be the public agencies, government departments and politicians which and who provided interventions/assistance to the survivors. The type of interventions/assistance received by them would also be collected and recorded as additional information. RESEARCH FLOW OBJECTIVES OF THE STUDY The study aimed to know how and how long the Sendong survivors in the areas of Barangay 17 in the City of Cagayan de Oro have recovere d the loss of livelihood they encountered after being devastated by the striking of typhoon Sendong.These were as follows 1) To describe the profile of the respondents in terms of: civil status, number of children, type/s of livelihood, years of residency in the barangay, starting capital, monthly income generated from livelihood and other sources of income; 2) to determine the types of loss experienced by the respondents in terms of physical and life aspects; and to find out the interventions/ assistance received by the respondents. SCOPE AND LIMITATIONS OF THE STUDY The study focused on the coping and recovery measures undertaken by the chosen occupants in Barangay 17, Cagayan de Oro City. There were 15 randomly selected residents which are being interviewed in accordance with the predetermined objectives.It includes obtaining information asked through personal inquiries in terms of vital personal information, determination of the types of livelihood and how it was adversely affec ted by Sendong which is regarded to be one of the best target question for the study, and finding out the interventions/assistance received by the respondents which purposely attempts to determine the variety of support, relief assistance and funding, donations and pledges the Barangay 17 community had already received, have been receiving and would be receiving. SCOPE AND LIMITATION The study was limited to the people of the respondents in terms of educational attainment, civil status, number of children if married, type of livelihood, years of residency in the barangay, place of origin, starting capital, monthly income generated from the livelihood, and the other sources of income. It determined the types of loss experienced by the respondents in terms of physical and life aspects. It is limited in finding out the interventions assistance received by the respondents. SIGNIFICANCE OF THE STUDY National Government.The outcome of this study would provide them detailed information and knowledge as to what proper governance and administration should be directed when any event same as this one would occur in the future. Through in-depth interview, which for most of the time proven accurate, would aid them in further assessing the exact and truthful undertakings, related stories of area survivors and especially the numerical facts of interventions and assistance obtained by the community victims. National Disaster Risk and Management Center. Aid them in further verification of the Final Report on Sendong they have already published and make appropriate changes, if needed. The data obtained through this study would also enable them to understand the tasks and duties entrusted to them being an organ for national management on disaster.Local Government Units. The result of the study will aid them in determining what are the other needs of the victims in their respective areas and be able to make appropriate measures to resolve them. The end-result would also help them understand and identify what are the corresponding duties entrust to them when such events occur again. Community. By giving them an in depth knowledge of what duties and responsibilities are relied on them when such occurrences take place. The study would provide these communities the following information and as well as the measures to cope and recover livelihood if such event would occur. Future Researchers.This study will prompt future researchers to deal with other factors and measures significant for quick and immediate recovery of loss livelihood of devastated societies, not only in the local regions but most importantly for the national as whole, providing prompt and immediate action for livelihood recovery and sustainability. Serve as a catalyst for further research on the grounds of good governance in terms of community safety keeping and public trust building. Victims of Typhoon Sendong. This would aid them on deciding what type of means they are going to prefer and unde rtake for them to be able to support and sustain their needs after the loss encountered during the devastation of Sendong. City Social Welfare and Development Office.The study will be considered as deemed relevant for creating awareness, and for these offices to establish prompt measures and means to recover loss livelihood of devastated residents of the affected community. Academe. This research will aid the learners and would serve as a review for related study in another research setting. LITERATURE REVIEW A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stress and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base. (Chambers & Conway, 1991). As a means of sustenance. (New lexicon Webster Dictionary, 2001).A method need not only played by a sole individual but by various sectors of society, where the coordination of one to many towards the performance of its activities is deemed significant for the realization and attainment of one and everyone’s goal. The hidden complexity behind the term livelihood comes to light when governments, civil society, and external organizations attempt to assist people whose means of making a living is threatened, damaged, or destroyed. As the strength of a given livelihood is not only measured by its productive outcomes, but equally by its resilience to shocks, seasonal changes and trends and these shocks might include natural disasters (International Recovery Platform and United Nations Development Programme –India, 2005)..This study aims to conduct a review and an analysis of how typhoons affects communities and eventually livelihood causing an economic breakdown, and to be able to present through extensive research of how livelihood as strategies, developed to make a liv ing, means created for sustenance and survival is as fragile, breakable and vulnerable as it seems. IRP and UNDP-India. (2005 Cambodia is largely dependent on its natural resource base where agriculture is their primary source of livelihood. Rice production is the key economic activity in some province such as Siem Reap (United Nations Development Programme-Cambodia 2012) although the province also exhibits some of the income from other forms of means such as livestock farming and fishing. But how could the Cambodians be able to sustain a food for living and be able to maintain a good harvest if the country is frequently visited by destructive typhoons resulting to flooded farmlands along with washed livelihood for rural communities?Recommended livelihood recovery interventions include: the provision of capital (e. g. recovery fund) into existing savings and self-help groups; vocational trainings’ and programs to become a skilled worker and eventually learn an alternative liv elihood; and borrowings /financial grants for small and micro businesses (United Nations Development Programme-Cambodia, 2012). Taiwan, known as the main island of Republic of China, is not exempted from calamities such as typhoons and flashfloods due to its subtropical monsoon type climate (Grolier Encyclopedia of Knowledge, 2004), as a result, this industrialized and modernized republic fueled by agriculture, labor and export industries were flooded and flashed away.Typhoon Morakot which struck Taiwan on 8 August 2009 regarded as the deadliest typhoon to hit the island, taking 639 lives evaluated by the World Vision ,form the following assessments that the storm not only affects communities but as well as flooding farmlands, wiping out businesses, livelihood and infrastructure amounting to a net loss of $3. 3B total damage (World Vision, July 2010). Long term livelihood recovery programs comprises establishment of production and marketing unit in Kaohsiung county, employment of fa rmers to a mango plant corporation, livelihood trainings on how to commenced a handicraft business, and peach cultivation (World Vision, July 2010).Hit and devastated by Typhoon Ketsana on 2009, Vietnam of homogenous societies in Southeast Asia (Grolier Encyclopedia of Knowledge, 2004) had slowly but gradually facing its recovery. In coordination with United Nation Programme Coordination Groups, the People's Aid Coordinating Committee (PACCOM) and international non-governmental organizations, World Vision again set its foot to another ground spoiled by a storm. World Vision facilitates agricultural recovery through the provision of rice and vegetable seedlings which supplied food for 51,303 people during Winter/Spring crop and another 55,191 people during Summer/Autumn crop, allocating fish breed for fish raising and over 1,240 families received a piglet.Agriculture training sessions and technical support services on livelihoods recovery were also conducted as of World Vision (2010) report. Plagued by flood every three years, Bangladesh coping strategies according to Rashid et al. (2006). in his study states them in three broad categories: i) current adjustment strategies of reducing household food consumption, shifting to less preferred foods with lower cash cost, and reallocating household labor to increase current income, ii) unsecured borrowing which refers to borrowing that is not secured by providing household assets as collateral and, iii) secured borrowing denotes borrowing against assets owned by the household.Northern and Central parts of the Lao PDR were struck by Typhoon Haima on June 24-25, 2011 which disturbed the local people’s livelihoods, assets and properties. The Long Term Development Needs (24-60 months) requires the strengthening of farmers groups and developing their capability on livelihood diversification, association with banks, opening herd and flock health programs and coordinating with government for required technical liveli hood (Government of the Lao PDR, 29 August 2011). Typhoons (also identified as hurricanes) were typically trailed with flashfloods, mudslides, landslides and even loss, which can be either life or livelihood, or worse, it can be both.The story about Sendong relates to numerous other countries for which livelihood and economic faiths were unfortunately washed off by the unrelenting strong winds and heavy rains. Livelihood recovery is considered as one of the much disturbed factor of the society after calamity. Most of the moderate to severe affected countries caused by typhoons tends to recover two to seven years. This review of the literature shows the dependence of affected communities to government, private and no-government organizations in order to recuperate what was deemed lost, further reflecting the lack of indigenous knowledge, education and systems to make the coping as effective and successful one. RESEARCH METHODOLOGYThe research design used in this study is qualitative method which emphasizes descriptions and explanations of human experience and practices in an attempt to understand how the research participants experience and explain their lives in reality. This research focused on investigation of the livelihood recovery activities and interventions received by each family within a given location. Personal interviewing is what we use to better understand and get more specific details about the victims’ experiences which are relevant in this study. Guide questions, informal discussions will be used as methods in this research to collect data from the respondents which will result to the revelations of vital.Before interviewing the respondents, the researchers prepared a letter addressed to the Barangay Captain asking permission to conduct an interview with the victims of Sendong. Set of guide questions has been prepared in English based on the objectives of the study and later be translated into the vernacular language. Purposive sampling will be employed from at least 15 self-employed respondents. Before starting the interview, the researchers will explain the purpose and goals of this research to the respondent. The interview will take place in the respondents’ homestead during their free time. An audio recorder will be used with respondents’ permission to record the entire interview along with detailed notes on each interview. The results then were collected, tallied, analyzed and interpreted.

Madame Bovary (Roy’s Analysis)

Genroy Hylton It is in human nature to indulge in acts that gratify our emotion. Psychologists and evolutionary theologist teach that the heart can convince the brain, but the inverse is not true for the brain. That means people will most likely do what makes them feel good and not what is the best for them. Throughout the novel Madame Bovary the author Gustave Flaubert uses literary devices such as symbolism to express the idea that pleasure inhibits the progress of human aspiration. The first instance of pleasure inhibiting progress is in chapter one.Charles Bovary the main character is doing some intense studying for his medical practice exams. The author states, on page ten, that Monsieur Bovary â€Å"breaks all good resolutions† and starts to go to cafes to play dominoes. The Arthur states that Monsieur Bovary starts to [lose his mind] over the game. Monsieur Bovary quickly loses his sensible self value, evidenced by the fact that he starts â€Å"spending evening †¦ in a dirty public room. The Arthur further goes to express his low self esteem for Monsieur Bovary at this point by metaphorically comparing the game of dominoes to a simple clicking of dotted sheep bones on a marble table.The specific form of pleasure, Monsieur Bovary is getting from his irresponsible actions, is the same of freedom. Throughout Monsieur Bovary’s life he has been subjected to follow under the authority of his parents. His farther always tried to push him to be aggressive, assertive, and strong willed. This can be deduced from the belief the farther has, which is â€Å"with enough nerve a man could always get a head in the world. † which can be found on page seven. The farther also attempts to â€Å"harden his child’s constitution†, with â€Å"strict-discipline†.This actually works to further put young Monsieur Bovary into a submissive role. When a child is forced to follow a strict set of rules and is not allowed to challenge the principle but instead obey them without an understanding of why he should obey them, the child will make it routine to submit himself to the authority of others and even repress his own desires. The mother further encourages young Monsieur’s to be submissive by forcing her personal interests on him, such as, singing and to listen to her on poor frustrated ambitions†.Young Monsieur Bovary does not want to listen to his mothers past sorrows, which he can not help cure, but he is forced to suppress his desires to her higher authority. The result of this is that young Monsieur Bovary will not create his own aspirations and follow the lead of who ever is willing to lead him, and in this case its his mother. She decides the path that young Bovary should take in medical school, and he obeys without a murmur because of the depression that has manifested between him and that has manifested between him and his mother over time.Being deprived of the opportunity to develop his own sense of self for such a long period makes it understandable that Monsieur Charles Bovary would get enraptured to the point of ecstasy by his newly found freedom. The experience was so intense for him, the experience of making his own choices, that the author states, Monsieur Bovary would feel a â€Å"pleasure that was almost sensual† just by touching the door knob to a cafe. It is at the cafe that Monsieur Bovary opens himself up to the desires of his heart. He indulges in the freedom that he could not experience in the past because of his parent’s authority.With his freedom, he ventures to learn a few verses of songs to sing at social events with friends and how to make punch. The simplistic nature of what he can only be comprehended by noting that his true pleasure comes from the fact that he chooses to engage in those activities. No one told him to. It was a choice that he made and he could only blame himself for the consequence of the actions that he has committed . He gained confidence in his ability to make choices, good or bad. Just the fact that he has the power to control some element of his life gives him a new sense of life.But sadly, energy is neither created nor destroyed; it is simply transferred from one party to the next. This statement relates Monsieur Bovary’s new sense of life in the sense that it does not come without sacrifice and that in order for him to be able to enjoy it in this life, death must occur in the other. Monsieur Bovary had a very important test that he had to take in order to be able to practice medicine. With the time he should have been using to prepare himself for the test, Monsieur Bovary spent that time enjoying himself at the cafe, doing what was described in the previous paragraph.Instead of using his mind and preparing himself for his exam, he was enslaved by the desires of his heart and enjoyed the pleasures of freedom. When he came to take the test, he found that he completely failed it and co uld not practice medicine. Not until Monsieur Bovary realized the effect of the consequence of his indulgence in pleasure, is he able to begin thinking with his mind. Not until he has to face the authority of his life, his parents, does he humble his desires for freedom.After he faces his mother with the news that he failed the medical exam, he begins to reason with himself and studied â€Å"ceaselessly†. He retook the test and past. The second example is Monsieur Bovary getting pleasure from Madame Bovary and it inhibits his ability to address the disrespect she shows toward him. Monsieur Bovary grew up with profound respect for his parents, especially his mother. He obeyed his mother when she told him to marry women much older then he was and who was very unattractive, but when he gets in a relationship with Emma Bovary, he starts to disregard his mother’s decisions.When the mother came to visit the newly wed couple, young Madame Bovary and she would get into argumen ts, described in chapter seven page forty. Monsieur Bovary would just watch his wife blatantly disrespect his mother by not humbling herself. He does not even try intercede and correct his wife’s behavior, because, as the Arthur states, â€Å"his [pleasure from] his wife is boundless†. If it still unclear that pleasure is a blinding force, the author states that â€Å" Emma seemed to his perfect, â€Å" even thought his â€Å" perfect† Emma dishonors him by not stinting herself when in the presence of his mother.The pleasure that he gets from young Madame Bovary distorts his logical to the extent that he begins to disregard the words of his mother because they are contrary to the words of wife instead of the inverse. Entering part then of the book, Madame Bovary becomes attached to the presence of a young man Leon. It is clear that she wanted to have an affair with him. When he leaves Madame Bovary is struck with despair and increases in her hostilities. Madam e Bovary is clueless to why she has progressed to such an ill state, and when he tries to console her and find out what’s wrong she shrugs and disrespectfully states â€Å"what of it? He is so enrapture by pleasure that he gets just from having Madame Bovary as his wife that he fears to do anything that might jeopardize their relationship he it slave to his desired, and, because had not conquered his desires, as all adults must, he regresses to child like behavior, evidenced in the text when it states that offer Madame Bovary brushes his sentient behavior away, he â€Å"shut himself in his consulting room †¦. Put his elbows on the table and wept. † He weeps like a child who does not know what to do and like a child writes a note to his mother.Monsieur Bovary still had problems heeding to any advice his mother would give to him because it all supported the idea that Madame Bovary lays a loaner; and monsieur Bovary could not agree to anything that would conflict wi th the image he has of his wife as â€Å"perfect†. This is farm pleasure is the pleasure of outside acceptance. The term outside acceptance someone ability to be accepted by someone who is not biologically related, and therefore, has to accept them. This form of pleasure is farther enhance by Madame Bovary‘s beauty. When a man falls to this kind of pleasure his development as a man is inhibited.The third example of pleasure inhibiting progress is Madame Bovary constantly seeks pleasure fro men other the husband. This inhibits her ability to from a health relationship between her husband and her child. Madame Bovary has become foolish because of her pleasures. She married to a husband who is deeply in love with her and is considered to be one of the top physicians. She is willing to risk her relationship by going out with strange men when she knows nothing about and can do nothing for her, but see so willingly buy them expensive gifts.Rudolph, one her mistresses, states that most of the gift she gives he does not accept simply because he had no heed. Madame Bovary would continue to push and give gifts to these strange men even though they risk driving her and her husbands businesses into dept. Gustave Flaubert is a French novelist. His works consists of psychological analysis, the individual and the society, and realism. Flaubert was born in December 12, 1821 at a hospital his farther was a physician at. Flaubert has an older brother and a younger sister. They lived in a house connected to the hospital.As Flaubert begins his artistic career, he is heavily influenced by a French writer named Honore de Balzec. They both practice aesthetic to bring beauty to their stories. It was also the first book he got published and brought him the attention of the literary world. Flaubert's works include A Sentimental Education (1869), a novel dealing again with the theme of the frustrations of middle-class life and human aspirations and The Temptation of St. Ant hony (1874), a series of religious tableaux. In 1877, he published Three Tales, which contains short stories, â€Å"A Simple Heart,† â€Å"The Legend of St.Julian the Hospitalier,† and â€Å"Herodias. † Flaubert's play, The Candidate, failed after a few performances in 1874, and his last novel, Bouvard and Pechuhet, which was unfinished on his death, was published in 1881. Gustave’s sister died during childbirth when Flaubert was twenty-four. She left behind her daughter Caroline Hamard, who was raised by Gustave and his mother. His mother would live with him until his fiftieth year. As an adolescent of fifteen, Flaubert fell in love with an older married woman, Elisa Schlesinger, and remembered her ever after as a pure and innocent love.The young man was sent to Paris, France, to study law. He had easy access to prostitutes, and this led to venereal disease from which he never recovered. In 1845 Flaubert had his first attack of temporal-lobe epilepsy. He was crippled by his seizures, which were terrifying for him and reappeared at intervals throughout his life. In 1846 he had to face the deaths of his father and his beloved sister. Flaubert decided to quit his legal studies, since any emotional excitement brought on an attack of his epilepsy. He felt he must become an observer of life and not a participant in it, so he devoted himself only to his writing.Gustave Flaubert was crippled by syphilis and his rapidly declining health. Two weeks before his death, he told his niece Caroline, â€Å"Sometimes I think I'm liquefying like an old Camembert. † On 8 May, 1880, Flaubert died from brain hemorrhage. Works Cited â€Å"Flaubert, Epilepsy. Famous People Who Suffered from Epilepsy: Gustave Flaubert. † Flaubert, Epilepsy. Famous People Who Suffered from Epilepsy: Gustave Flaubert. N. p. , n. d. Web. 1 Mar. 2013. Flaubert, Gustave, and Claudine Gothot-Mersch. Madame Bovary. Paris: Garnier, 1971. Print. â€Å"World Biography . † Gustave Flaubert Biography. N. p. , n. d. Web. 1 Mar. 2013.

Alcohol Promotion and the Marketing Industry

Julie A. Novak International MBA Student York University Prepared for The Association to Reduce Alcohol Promotion in Ontario September 2004 Working to Reduce the Impact of Alcohol Advertising Acknowledgements ARAPO wishes to acknowledge the effort and contributions of the following individuals to this paper: Tom Appleyard, Alcohol Projects Manager, Ontario Public Health Association Ben Rempel, Alcohol Projects Consultant, Ontario Public Health Association Pat Sanagan, Co-Chair, Association to Reduce Alcohol Promotion in OntarioJulie A. Novak is an International MBA student, studying through the Schulich School of Business at York University in Ontario. Julie has also completed her Master’s Degree in Political Science at the University of Toronto, and a Bachelor of Science Degree from the University of Victoria. She has held positions in Public Policy in such places as Moldova and Geneva.This paper examines current marketing trends in the alcoholic beverages industry that can i mpact the public’s health and safety. It is important for public health organizations to be aware of trends common to the industry; this will inform and bolster their efforts as watchdogs to manufacturers and retailers of alcohol.The analysis describes the critical elements of the marketing mix, and makes a clear distinction between advertising and marketing. Advertising is an important part of the marketing mix; however, there are several other tactics and tools employed by marketers in the industry to influence consumer behaviour and to build strong brands. The paper reviews current trends in the alcoholic beverages industry generally, drawing specifically on some examples from the global beer industry.In the fight to increase market share, marketers will alter their marketing strategies in response to industry trends, seeking synergies that may exist between sponsorship and promotion. The paper also discusses the use of bottle labels for marketing alcohol products as an ex ample of the overlap of product and promotion. This leads into a discussion of the relationship between advertising and packaging and how they are used to encourage selection of certain brands over others. Advertising trends, such as sexually explicit content and low-carb and health conscious media messages are also addressed.These are variables in the marketing mix. The last section discusses the current guidelines concerning marketing and promotions and the position taken by various public health groups such as ARAPO (Association to Reduce Alcohol Promotion in Ontario) in response to the current trends and tactics used in alcohol marketing and promotion with specific attention to recommendations to regulators. 1 1. 0 INTRODUCTION The Canadian alcoholic beverages industry includes brewers, wine producers and distilled spirits manufacturers. Molson Inc. s the oldest beer brand in the Canadian brewing industry and a global brand name with products that include Molson Canadian, Molson Export, Molson DRY, Rickard's, and Brazilian beer brands Kaiser and Bavaria. Total net sales for Molson in 2004 – year ending March 31 – were $2. 5 billion. This amounted to annual profits of $2. 37 million1. Another Canadian favourite is John Labatt Ltd. , which is owned by the Belgium-based company Interbrew. The second largest brewer by volume worldwide, Interbrew owns a portfolio consisting of, among others, Stella Artois, Carling, and the popular Labatt line of beers.In 2003, Interbrew recorded a gross profit of â‚ ¬3. 6 billion, which resulted in a net profit of â‚ ¬505 million, after spending an incredible â‚ ¬1. 3 billion on sales and marketing2. The other three major players are Sleeman Breweries, Big Rock Brewing Income Trust, and the Brick Brewing Co. Sleeman, a specialty brewed premium craft beer, recorded annual sales of $1. 85 million in 20033. Big Rock Brewing Income Trust recorded net sales of $28 million in 20034. The Brick Brewing Co. , resp onsible for Formosa and Red Cap brands among others, recorded gross sales of $11. million for the second quarter of 2004. This resulted in a record net income of $832,000 over a three-month period5. The Association of Canadian Distillers is the national trade association representing Canada's major distillers. The distilling industry has been estimated to generate $2. 6 billion worth of economic activity. Distillers include, among others: Bacardi Canada Inc. ; Canadian Mist Distillers, Ltd. ; Hiram Walker & Sons, Ltd. ; Corby Distilleries, Ltd. ; Diageo Canada, Inc. ; and Schenley Distilleries Inc.These distillers produce popular spirits including Brandy, Gin, Cognac, Vodka, Rum, and the ever-popular Canadian Whiskey, Canada’s most established domestic and exported distilled spirit. Since 1840, there have been over 200 whiskey distilleries operating throughout the country, as Canada has gained recognition as a producer of high quality whiskey. This reputation has resulted in billions of recorded sales for the Spirits industry. For example, Diageo recorded sales of US$ 15. 6 billion in 2003. Domestic and imported spirits sales for 2003 were recorded at nearly 15 million cases (12 – 750 ml. ottles)6. The Canadian Vintners Association is Canada’s national association of vintners, representing 34 wineries and producing about 90% of Canada’s total wine production and export. Winery members include, among others, Jackson-Triggs, Peller Estate, and Hillebrand Estates. Total Canadian wine sales for 2002, was 267 million litres7. Molson Annual Report (2004). Interbrew Annual Report (2003). 3 Globe Investor (2004). 4 Big Rock Brewing Annual Report (2003). 5 Just-drinks. com (2004). 6 Association of Canadian Distillers (2004). 7 Canadian Vintners Association (2004). 1 2 1. 1 Marketing – A Definition The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller; marketing on the needs of t he buyer8. According to the Business Knowledge Center, â€Å"the Marketing Concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs better than the competition. †9 Additionally, despite misconceptions, marketing is not always advertising. In fact, advertising comprises only a small part of the overall marketing mix.The variables of the marketing mix will manifest in unique ways depending on industry characteristics as they are heavily influenced by local and global industry trends. 1. 2 Building Brand Community Building brand loyalty is key to the success of the marketing concept. Developing and exploiting crucial relationships among the customer and the brand, the customer and the firm, the customer and the product in use, and among fellow customers10 is a strategy that leads to a belief that the buyer is part of a specific brand’s â€Å"community†.These relationships are important because t hey enable marketers to create brand loyalty and customer retention, which yield the promise of long-term profitability and market share11. Like a social community, the brand community tends to be identified on the basis of commonality or identification among its members12. The brand community members identify through devotion to particular brands or consumption activities, which are connected to other symbols in the marketplace13.For example, a product that is endorsed by a popular celebrity or professional athlete will appeal to certain brand communities or target markets, but not all. Responses to marketing influences may be cognitive, emotional or material in nature and, ultimately, customers will value their relationships with their branded possessions and with marketing agents14. The basis for community identification can be on wide-ranging commonalities that are difficult to detect. The stability of a brand community through time is an asset to marketers inasmuch as longevity equates with a stable market.Additionally, if marketers are able to successfully identify where a potential brand community exists, they can use it to bolster their marketing efforts and build brand loyalty. Furthermore, marketers will tailor their strategies such that they resonate with particular existing communities. If used effectively, this knowledge can be a powerful tool for marketers, as they will have greater insight into some of the motivations behind consumer behaviour. 1. 3 Global Alcoholic Beverage Perspective It is impossible to discuss the Canadian alcoholic beverages market without considering the global perspective.In particular, the global beer industry is facing increasing pressures 8 Levitt (1986). Business Knowledge Center (2004). 10 McAlexander et al. (2002). 11 Ibid. 12 Ibid. 13 Ibid. 14 Ibid. 9 3 of internationalization and consolidation, which are both the result and the cause of industry-wide mergers, acquisitions, partnerships and strategic alliances. Fac ing low prospects for volume growth in mature, developed markets and increasing competition, brewers continue to seek growth through acquisitions of other brewers or by aggressive participation in developing markets15.Indeed, the top ten brewers worldwide now account for more than half of the entire world’s beer, which is an industry first16. Given the lack of volume growth opportunities in the North American market, the industry trend of increased marketing and advertising spending continues as companies try to differentiate their brands in a highly saturated market. Not only is the market saturated, but the marketing media are cluttered. In order to achieve standout in a cluttered industry, breweries continue to develop creative ideas that generate excitement around their brands.Smaller breweries, in particular, try to increase brand recognition through provocative or racy ad campaigns since they cannot hope to compete on the same scale as their larger competitors with resp ect to the total amounts spent on marketing and advertising. 1. 4 The Marketing Mix It is important to understand all of the variables that comprise the marketing mix, or the 4Ps of marketing: Product, Price, Place and Promotion. The 4Ps are the variables that marketers can control in order to best satisfy the customers in the target market17.First, the product is the physical product or the service offered to the consumer, which can include additional services or conveniences that are part of the offering. Marketers can adjust certain product characteristics such as the functionality, appearance, packaging, brand, quality and service. The second variable, price, reflects company considerations such as profit margin and competitor pricing, including discounts. Third, place refers to the decisions associated with channels of distribution that act as a means of reaching the target consumers.This includes the channel members along the supply chain, market coverage and the various servi ce levels. Finally, promotion decisions are all those that relate to communicating and selling the product to potential customers. These may include advertising, personal selling, media, public relations and budget. Thus, marketing is a multi-dimensional function that yields a variety of effects. In the alcoholic beverages industry, a mature and highly competitive market, companies experiment with their marketing strategies regularly.The focus of this paper is primarily on promotion and product and, specifically, how these two variables are manipulated in tandem by marketers to create powerful marketing strategies. 15 16 Todd (2004). Ibid. 17 McCarthy (1975). 4 1. 5 The Impact of Advertising on Consumption and Related Problems Alcohol advertisers use effective advertising techniques to reach the youth market. Such techniques link alcohol to physical attractiveness and sexiness, promote age identification through the use of spokespeople, and use humour, music and popular culture icon s18.In 2002, $160 million was spent on alcohol advertising in Canada19 and alcohol appears in approximately two thirds of all programs watched by Canadian teens at an average rate of 8. 1 drinking references per hour20. The consequences of alcohol advertising on public health and safety are considerable. Alcohol use plays a substantial role in all three leading causes of death among youth – unintentional injuries (including motor vehicle fatalities and drowning), suicides and homicides21.Alcohol advertising is linked to patterns of heavy drinking, drinking in dangerous situations and deaths from alcohol-related motor vehicle crashes22. In one study, the chances of drinking alcohol rose by nearly 10% for teens who watched an extra hour of regular television programming per day23. 2. 0 CURRENT MARKETING TRENDS 2. 1 Synergies Between Promotion and Sponsorship Currently, a dominant trend in the alcohol industry is a link between promotion and sponsorship. Companies are attempting to capitalize on the ynergy that exists in this area as they move deeper into the global arena to achieve a greater return on their marketing expenditures. The term synergies denote opportunities for collaboration in which the result that can be achieved is greater than the sum of the individual efforts. An example is the positive spillover of media exposure that results when a brand becomes the official sponsor of an international sporting event, especially one with wide television coverage. In effect, this amounts to a cost-effective marketing campaign for the sponsoring company, assuming the outcome is consistent with the overall brand identity.Another factor contributing to the drive for synergies is the seasonality of this industry. Manufacturers prepare for the summer beverage-selling season by ramping up production, increasing their marketing and seeking sponsorship deals, which act as promotional vehicles for new launches and summer products. Sponsorship agreements with int ernationally recognized sporting events help to enable a brand to stand out among the clutter. McKenzie (2000). AC Neilson (2004). 20 Robinson et al. (1998). 21 AMA (2003). 22 McKenzie (2000). 23 Robinson et al. (1998). 19 18 2. 1. 1 Sports Sponsorships Alcohol manufactures are increasingly seeking contracts for official sponsorship of highprofile sporting events as they realize the opportunities for synergies between promotion and advertising. The Canadian Code of Advertising Standards, produced by Advertising Standards Canada states: â€Å"products prohibited from sale to minors must not be advertised in such a way as to appeal particularly to persons under legal age. [And] people featured in advertisements for such products must be, and clearly seen to be, adults under the law24. High profile sports sponsorships with a heavy advertising component risk being in violation of this regulation. Two of the major international sporting events in Canada, the Roger’s Cup in Montre al and the Tennis Master’s Series in Toronto are sponsored by breweries. Sleeman is the official sponsor of Tennis Canada in Montreal; Heineken, which is part of the Molson portfolio of brands, is the sponsor in Toronto. The situation in Canada reflects a global trend. In late 2003, Heineken signed a deal with the British Olympic Association (BOA) for exclusive sponsorship rights.The deal is part of a â‚ ¬50 million global investment by the brewer25, giving the company exclusive rights to the BOA logo. Sponsorship deals are considered an opportunity for alcohol manufacturers to establish global brand recognition in a competitive industry. With huge budgets behind sponsorship deals, and the wide international exposure that results, it is very difficult for watchdogs to monitor the visibility of alcohol brands. The clientele and audiences at sporting events such as the Olympics are of all ages, youth included.Therefore, limiting exposure of beer ads only to legal age consume rs is nearly an impossible undertaking. In April of 2004, NASCAR (National Association for Stock Car Auto Racing) in the US was strongly considering changing its policy to allow hard-liquor brands to sponsor teams in its top tier Nextel Cup Series26. Though such a move could alleviate sponsorship problems for some drivers, it could threaten NASCAR’s desire to become more family friendly. With this in mind, NASCAR rejected Diageo’s bid to become official sponsor.This move did not prevent Diageo from landing a sponsorship deal: the company secured a top sponsorship contract for its brand Crown Royal. Crown Royal was signed to be the title sponsor of the International Race of Champions (IROC), one of the NASCAR events. This marked the first time a hard-liquor marketer was allowed a title sponsorship for any sport, although Diageo’s Smirnoff Ice Triple Black brand has sponsored individual drivers. However, when Diageo's Crown Royal brand signed on as the title spons or for the IROC series in January, NASCAR reiterated its ban on sponsorships from hard liquor and chewing tobacco companies.NASCAR has a long history of partnering with beer marketers for races, but accepting hard-liquor brands would be a complete reversal of NASCAR’s position. Such changes in sports sponsorship have vast implications for industry players, marketers and public health groups. In the case of Diageo, the sponsorship deal is one step toward 24 25 Advertising Standards Canada (2004). Anonymous (a) (2003). 26 Thomaselli (2004). p. 1 6 the achievement of the company’s long-term goal of leveling the marketing playing field with beer. 7 As an example, with the three-year deal, Crown Royal will have extensive television exposure, since IROC just sealed a one-year TV pact with Speed Channel, a cable subsidiary of News Corp. ‘s Fox28. Such exposure is difficult to track and, thus, even more difficult to regulate. Although spirits have so far been prohibited from becoming sponsors, hard-liquor companies can, and have, used their malt beverage products or RTD (Ready to Drink) products29 as sponsors. Diageo's Smirnoff Ice, for instance, is one of the sponsors of driver Matt Kenseth, last year's NASCAR champion. . 1. 2 Promotion and the Entertainment Industry Another advertising tactic used by liquor companies is cross-promotion with the entertainment industry. This could include joint promotional campaigns between film studios and alcohol brands or between liquor companies and music tours and concerts. An example is the recent collaboration between Adolph Coors Co and Miramax’s â€Å"Scary Movie 3†, which was released at the end of 2003. Coors not only advertised around the promotion of this film, but it also had its spokeswomen, the Klimaskewski twins, appear in the film itself30.This technique is another way for companies to realize synergies in marketing and promotion, as there exists the potential to reach a broader audi ence than could be reached through a simple television commercial or magazine ad. In this case, Coors was attacked by the Marin Institute – a public health and safety group – for its involvement in the film promotion. The Marin Institute accused Coors of defying the alcohol industry’s guidelines by promoting its connection to this film31. Given the PG-13 rating of the film, there was no way of ensuring that under-age viewers were not exposed to the ads.In the music industry, there are many examples of activities involving cross-promotional campaigns with alcohol companies. These campaigns are used to achieve synergies from the combined effect of promotion and advertising. Molson Canadian uses this technique regularly, teaming up with Napster to provide music downloads and other special music offers. The company launched a campaign contest that involved the giveaway of a â€Å"Molson Canadian Rocks Summer Soundtrack, as well as weekly chances to win concert tick ets†32.Trends in promotion and sponsorship in the alcohol industry are of concern to public health groups because they have the ability to reach a wide audience, with little or no regulation. Other forms of promotion and sponsorship exist, however a description of each is beyond the scope of this paper. 27 MacArthur (2004). Ibid. 29 RTD: Ready-to-drink alcoholic beverages, such as Smirnoff Ice and Mike’s Hard Lemonade. 30 MacArthur (2003). 31 Ibid. 32 Molson Insider (2004). 28 7 3. 0 ALCOHOL MARKETING AND THE INTERNET Alcohol companies are using digital marketing as a medium.The Center for Alcohol Marketing and Youth (CAMY) in the US found that alcohol company websites have sizeable youth audiences and contain content that is attractive to youth33. In particular, games, cartoons, music and a variety of high-tech downloads fill many of these sites. In addition, programs designed to allow parents to block their children’s access to these sites often fail to do so34 . In fact, fifty-five alcohol websites tracked by comScore Media Metrix during the last six months of 2003 had almost 700,000 in-depth visits from underage persons35.Alcohol websites continue to be a cyber playground, with many features attractive to youth36. CAMY executive director Jim O’Hara identifies content such as customized music downloads, instant-messaging accessories and games including putt-putt golf, football and spin the bottle37. A recent website probe done by the Federal Trade Commission’s (FTC) Division of Advertising Practices in the US found that both Coors and Anheuser-Busch have sites with downloadable music, online games and ring tones38.In fact, as teens start to log more hours surfing the Web than watching television, CAMY and other groups are calling for more regulation on the largely unregulated medium. Jim Hacker, director of the Alcohol Policies Project at the Center for Science in the Public Interest, asserts, â€Å"The industry should remo ve themes, music, language and attractions that clearly appeal to underage people. †39 A key issue for health and safety groups is the ease of foiling the age requirement for viewing beer company websites.An age bar is supposed to weed out youngsters who find the sites attractive, but the investigation discovered that online forms can inadvertently â€Å"tip† kids to fill in fake answers. The trade journal Brandweek visited two websites, Coorslight. com and Budweiser. com and was able to enter several fake birth dates from the same computer, gaining access each time40. When questioned, John Kaestner, VPconsumer affairs at Anheuser-Busch, said the brewer had followed federal guidelines in its age-check system. Other websites attracting attention from the FTC are Bacardi. om, Skyy. com and the Anheuser-Busch site BudLight. com, according to a study by CAMY 41. The claim is that these sites had the highest percentage of underage people making an in-depth visit during the s econd half of 2003. The findings, which were released in March 2004, showed that 59 percent, 47 percent and 34 percent of visitors who looked at three or more pages on those previously mentioned sites were underage42. Overall, minors initiated 13. 1 percent of in-depth visits to the 55 branded alcohol sites included in the study. 33Center for Alcohol Marketing and Youth (2004). Ibid. 35 Ibid. 36 Mack (2004). 37 Ibid. 38 Edwards (2004). 39 Ibid. 40 Ibid. 41 Ibid. 42 Ibid. 34 8 This trend is especially worrying for public health and policy groups since the Internet knows no boundaries, and its content is therefore very difficult to regulate. Alcohol advertising on the web and music downloads have the power to reach all Internet users around the world, of any age. 4. 0 -THE ROLE OF LABELING AND PACKAGING IN ALCOHOL MARKETING The alcohol industry relies heavily on the use of labeling and packaging as a irectmarketing tool in the promotion and differentiation of its products. One of the obstacles facing design marketers is that while standout is paramount, they are all starting with the same structure: a simple bottle or can43. Since it is not possible to have a vastly different pack, companies differentiate themselves with creative labels or packaging. Marketers in the alcohol industry aim to create synergies among label designs, packaging and advertising, such that the overall brand image more quickly achieves wide recognition.The intended result of this coordination is a more effective and integrated means for alcohol companies to communicate with their consumer base, thus encouraging the selection of their product over another. If the product already has a strong brand identity, it is not critical to feature the pack in the ads. In this case, the advertising may be used to communicate other elements of the brand message to create the desired reputation and image with the target audience44. On the other hand, including a shot of the bottle in ads will enhance br and awareness at point of sale and ensure a more integrated approach to branding45.Approximately 60 percent of people in bars and pubs have not decided what drink they want until after they get there46. This is an enormous opportunity for brands to reach their target markets directly at the retail level with eye-catching labels that resonate with consumers. Product labels are the final point of brand contact between the company and its customers before the purchase is made. Thus, a brand’s name and how it is shown on the label can be an effective way of generating sales. The main challenge is finding a way to differentiate a standardized product while developing a strong, consistent brand identity.This is an example of the interaction of product and promotion, two elements of the marketing mix. Some of the methods used in the ready-to-drink and premium beer sectors, for example, include shrink-wrapping, bright colours and innovations such as metallic-effect labels47. In addit ion to a unique label, a catchy name, such as Smirnoff Ice or Mike’s Light will add symbolism and help increase standout and attract consumers. Brand awareness is critical for alcohol companies, and developing a strong brand is especially vital for new brands.The rationale for coordination between promotion and product is that young people, and other potential consumers, will see the campaign in Edwards (2004). Brabbs (2002). 45 Ibid. 46 Ibid. 47 Ibid. 44 43 9 cinemas and style magazines and more easily recognize it from other advertising media 48 . An additional reason to invest in labeling and packaging is flexibility. A shrink-wrap sleeve can be changed frequently, allowing the brand to adapt its appearance more easily to changing styles and trends.Unusual colours or unique label designs can help encourage selection of one product over another at the retail level. The techniques used by marketers are very subtle, such as borrowing design language from parallel markets for encouraging cross purchasing such as â€Å"Atkins friendly†, â€Å"light† or â€Å"low-carb. † Finally, if a particular brand is experiencing low or declining sales, a company can easily reposition it by superficially altering the image and, hence, reinventing a product to reach a new market. 5. 0 TRENDS IN ADVERTISING TECHNIQUESCertain techniques are used by advertisers to attract and engage consumers to their products. These have traditionally included such techniques as humour, sex appeal, popular music, describing benefits of the product, and creating a fun, enjoyable atmosphere. These techniques are used very effectively by alcohol advertisers as well, as they create a high ‘liking’ of advertisements among consumers49. High levels of effective alcohol promotion inculcate pro-drinking attitudes and increase the likelihood of heavier drinking50.For these reasons, the irresponsible use of advertising techniques is a growing concern among health an d safety advocates. 5. 1 Sexually Explicit Content The alcoholic beverages industry has long been accused of exploiting male sexual fantasies in order to advertise its products. However, this approach has recently, in some opinions, reached new levels of exploitation. Early in 2004, Labatt Breweries of Canada aired an ad during the January Super Bowl telecast that caused industry watchdogs to protest.The ad featured two beautiful women kissing, ostensibly to share lip-gloss51. Advertising Standards Canada (ASC) received 113 complaints about this ad in the first quarter and it was soon taken off the air52. The ASC reported that there was nothing wrong with the ad, other than it should run after 9:30pm. This ad is representative of the ‘simulated lesbianism’ trend in beer advertising, clearly a ploy to reach the male heterosexual audience. Labatt is not the only brewery to take this approach.During the same time period, Moosehead Light of New Brunswick launched a series o f ads called â€Å"Enjoy the Nature. † In one of the ads, two men look on and crack open beer cans as two beautiful women dance sensually together in the forest. Ibid. Grube (1996). 50 Babor et al. (2003). 51 Brent (2004). 52 Ibid. 49 48 10 5. 2 Low-Carb Phenomenon & Health Benefits Alcohol marketers must understand the psycho-behavioural forces influencing choice in order to devise effective marketing strategies. These forces are not easily identifiable in any industry.The beer and alcohol industry is not an exception and alcohol marketers have been slow to discern which factors most significantly influence brand selection. Although the sexual angle remains very common in alcohol promotion, the industry seems to be shifting gears. Instead of trying to titillate men by invoking male fantasies, marketers are now instilling fear in them about getting fat. In a feature article the Financial Times reported that beer marketers in the US have made an intriguing psychosexual discove ry about male insecurity53.The argument advanced is that men are increasingly more concerned with what they look like than how they will perform in the bedroom. Beer brands such as Anheuser-Busch’s Michelob Ultra, Coors Light and SABMiller’s Miller Lite are focusing their advertising on the millions of Americans on low-carbohydrate diets, which they have realized does not include only women. By contrast, marketing campaigns linking beers to explicitly sexual imagery have been less effective54. The implication for public health groups is that efforts aimed at regulating sexual content should be reexamined.It is possible that a greater impact could be achieved through aggressive targeting of ads that portray a health or nutritive benefit of alcohol consumption. As an example, Coors, the third-largest US brewer55, recently developed new ideas for its low-calorie Coors Light. The two-year campaign featuring scantily clad women and rock music was unsuccessful in increasing beer sales for the company. Beer companies are slowly discovering that sexual appeals are fun and diverting but they rarely change consumers’ brand preferences. The idea that â€Å"light beer† is less macho and thus less likely to appeal to young men is fading.In fact, it is difficult to think of a major beer company that has not introduced a low-carb brand. The success, in general, of low-carb offerings is evident in food store data compiled by AC Neilsen. In the four weeks ending June 12, 2004, sales volumes were up 56 percent for Michelob Ultra and 15. 6 percent for Miller Lite56. For Coors Lite, which has been slower to alter its marketing campaign, sales volumes were down 2. 7 percent57. Major breweries are responding to evolving consumer demands and are providing what could be the emergence of a new sub-category of beer58.As more companies enter the low-carb market, the competition increases for market share. This translates into bigger marketing and advertising budgets as companies fight for a larger slice of the market. The latest focus on a more health-conscious lifestyle has shifted the marketing emphasis away from sensuality and sex to body image and achieving athletic success. Some 53 54 Silverman (2004). Ibid. 55 Coors merged with Molson in July 2004. The new company is the 5th largest Brewery by market share worldwide. 56 AC Neilson (2004). 57 Ibid. 8 Brieger (2003). 11 industry experts expect this trend to stick around if not because of Atkins devotees but because of aging baby boomers, who tend to prefer light and low-carb beers59. The way forward in the alcoholic beverages industry will be through low-carb advertising, which can be seen as a serious response by the beer industry to a common male anxiety about growing fat, the proliferation of a healthy lifestyle among consumers, and the widespread belief of certain health benefits in drinking a low-calorie, low-carbohydrate beverage60.The low-carb trend is not exclusive to the be er industry. In May of 2004, the Vancouverbased Marc Anthony Group launched a new vodka-based beverage called Mike’s Light, which was targeted at the millions of Canadians on low-carb diets. The lemon-lime beverage, which is part of the ready-to-drink (RTD) alcoholic market, contains just one gram of carbohydrate and 76 calories and is expected to bring new drinkers into the market61. Already, the RTD market in Canada is estimated to be worth $450 million per year in sales.Additionally, with its low- calorie and low-carb options, the RTD market has the potential to increase consumption of alcoholic beverages as consumers switch from light soft drinks to lighter malternatives62. Marketers in this industry are deliberate in promoting RTD products as alternatives for the health and weight-conscious consumer. It is misleading for brewers to promote low-carb beer as being â€Å"Atkins friendly† or as having overall health benefits and doing so goes against the Canadian Food Inspection Agency’s 2003 Guide to Food Labelling and Advertising. Under these guidelines, lowcarbohydrate claims are not approved.Similarly, according to Advertising Standards Canada, â€Å"No advertisement shall be presented in a format or style which conceals its commercial intent†63. This pertains to misrepresenting beer as having health or athletic benefits. The low-carb claim is of concern to public health groups such as ARAPO because it is both misleading to consumers and has the potential to influence consumer behaviour. 6. 0 ACTIONS TO ADDRESS CONCERNS ABOUT THE MARKETING OF ALCOHOL There have been several responses to concerns about the impact of alcohol marketing ranging from education and awareness to legal action and civil suits.Internationally, there are groups that advocate changes in alcohol marketing regulations as well as educate professionals and the public about the risks associated with a proliferation of alcohol marketing efforts. These include: G lobal Alcohol Policy Alliance (UK): www. ias. org. uk Eurocare – Advocacy for the prevention of alcohol related harm in Europe (Europe): www. eurocare. org Center for Science in the Public Interest – Alcohol Policies Project (US): www. cspinet. org Ibid. Business World (2004). 61 Bellet (2004). 62 The market or ready to drink alcoholic beverages is called the malternative market in the US. 63 Advertising Standards Canada (2004). 60 59 12 BeerSoaksAmerica. org – A Response to beer company propaganda (US): www. beersoaksamerica. org The Marin Institute (US): www. marininstitute. org Center for Alcohol Marketing and Youth (US): www. camy. org In Canada, there are guidelines for advertisers that outline what are considered appropriate tactics for marketing products. These guidelines can be found on the Advertising Standards Canada (ASC) website (www. adstandards. om) for all forms of advertising or on the Canadian Radio and Telecommunications Commission (CRTC) websi te (www. crtc. gc. ca) for radio and TV ads. Currently these guidelines are not enforced and rely on a voluntary paid-submission to ASC by the advertiser. Alcohol is one product that seems to have fallen prey to this lack of regulation with many advertisers outright disregarding the guidelines. In Ontario, there are alcohol-advertising guidelines that are overseen by the Alcohol and Gaming Commission of Ontario (AGCO) and can be found at www. gco. on. ca. Before 1997, the CRTC was involved in pre-screening advertisements before they were aired. In 1997, this responsibility was transferred to ASC for national cases, and the AGCO for Ontario specific cases. However, in 1997 the regulations changed to â€Å"guidelines† and preclearance was replaced with â€Å"voluntary submission†. As a result, the responsibility of monitoring alcohol advertising shifted from the CRTC to the general public, as advertisements are now only challenged based on a complaint format.Advertisers, fearing very little in terms of consequences, often disregard the guidelines completely, particularly the following: Alcohol advertising should not: appeal to persons under the legal drinking age associate drinking with activities that require care and skill imply that drinking is required in enhancing enjoyment of any activity imply that drinking is required in obtaining sexual opportunity or appeal64. A study done by CAMY in 2002 found that as the alcohol industry increased its advertising expenditures, more ads were seen by youth.In fact, all 15 of the shows most popular among teenagers included alcohol ads. â€Å"Survivor,† â€Å"Fear Factor† and â€Å"That 70’s Show† were among those with the most ads65. The dramatic increase in youth’s exposure to alcohol brands in magazine and TV advertising suggests that the industry’s guidelines are so permissive that, in practice, they amount to no limits at all. Concerned about the lack of re gulation and increase in alcohol ads – and as a result, increase in consumption – health and safety advocates respond to aggressive marketing with specific strategies, as discussed next. . 1 Awareness, Education and Skill Building The Association to Reduce Alcohol Promotion in Ontario (ARAPO) is funded by the Ministry of Health and Long-Term Care to provide resources and support to individuals and groups about media literacy and critical thinking skills as they apply particularly to 64 65 AGCO (2003). Anonymous (c) (2004). 13 alcohol. Resources include research papers and presentations to youth and health promotion professionals about the impact of alcohol advertising on youth drinking patterns, particularly heavy drinking. 6. 2 Internet ActionThe Center for Alcohol Marketing and Youth uses a vivid Internet presence to attract viewers to their site to examine what others are doing around alcohol marketing. Along with a searchable marketing gallery and steps to take act ion, CAMY regularly publishes research papers on Youth and Alcohol. An example of this is a recent paper titled The Internet, Alcohol, and Youth, which looks at the impact of Internet alcohol websites on underage drinkers. It is available through CAMY’s website at www. camy. org. 6. 3 Complaints to Regulators and ResultsWhile ASC does not demand that advertisers clear their ads before going to the public, they do respond to complaints by the public. A recent example of this was the Don Cherry â€Å"Bubba† ad that was pulled following complaints that Don Cherry is seen as a role model for underage youth – and therefore could not be used as a spokesperson for beer. Groups like the Ontario Public Health Association, responding to concerns about the impact of alcohol advertising on the public’s health and safety, have sent recommendations to both the provincial and the federal regulatory bodies. These recommendations include: Continued pre-clearance of al cohol ads, at the final stage of production by federal and provincial bodies with a strong public interest mandate More effective regulation of lifestyle alcohol advertising, promotions and sponsorships Establishing clear guidelines regarding industry-sponsored responsible drinking messages and public education programs, particularly those appealing to, or directed at, young people Capping the total amount of alcohol advertising and introduce improved mechanisms for monitoring compliance with existing or new regulations Focusing on effective deterrence, monitoring and enforcement measures.This would include a stronger role for community groups in the monitoring and enforcement of federal and provincial advertising provisions, including membership in panels previewing and monitoring alcohol advertising66. 6. 4 Class Action Suits Against Alcoholic Beverages Industry Consumers’ attorneys across the U. S. have begun to target the alcoholic beverages industry, filing lawsuits that claim that some leading brewers and distillers are using slick advertising to sell products to underage drinkers67.In November 2003, attorneys led by David Boies III filed suit against brewers Coors and Heineken, distillers Diageo and 66 67 OPHA Position Paper (2003). Willing (2004). 14 Bacardi and the makers of Zima and Mike’s Hard Lemonade68. The suit accused the companies of using a â€Å"long-running, sophisticated and deceptive scheme†¦ to market alcoholic beverages to children and other underage consumers69† Boeis’ lawsuit alleges that alcohol companies place ads in magazines such as Stuff, FHM and Spin that appeal to males under the age of 21, or in Glamour, which is oriented toward females of similar ages70.The suit claims that ads placed in these magazines are designed to push people younger than 21 to obtain alcohol illegally71. The same is true in TV advertising, where many alcohol ads reach young people not old enough to drink. The class-action suits filed against the alcohol industry since November 2003 have caused alarm in the industry because the lawyer behind them is David Boies, who represented the Justice Department in its antitrust action against Microsoft72. The suits claim that booze ads targeted at adults spill over onto younger audiences73.According to another law suit filed in Los Angeles Superior Court in 2004, AnheuserBusch and Miller Brewing are targeting minors through ads and developing products that look and taste like soft drinks in order to lure underage consumers to their brands74. The suit claims that beer-makers are marketing alcoholic beverages known as â€Å"Alco pops† to minors. These include Doc Otis’ Hard Lemon Malt Beverage, which is made by AnhesuerBusch, and Miller’s Jack Daniel’s Original Hard Cola. Both of these beverages closely resemble soda pop with sweet flavours, bright colours and youth-oriented packaging. CONCLUSIONThe domestic alcoholic beverages market is considered mature, with limited opportunities for growth. One way for alcohol manufacturers to increase their sales volume is by taking market share away from their competitors; another is to expand the overall size of the market. To achieve these goals, alcohol manufacturers continue to invest substantial resources and capital into their marketing strategies because they believe it is necessary for expanding the market and increasing their margins. It will be important that public health groups focus their research on certain elements in the marketing mix.These include where the product is sold and what are the broad social trends marketers are using to communicate with target markets. This analysis summarizes significant influences in consumer behaviour. 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